The City Council finds that:
(1) The City of Philadelphia, through the Office of Housing and Community Development ("OHCD") and the Department of Commerce ("DOC") and their agents or designees, annually expends millions of dollars on housing and community development projects that include construction and construction-related activities, and which leverage additional public and private sector funds.
(2) These housing and community development projects can provide additional benefits to the neighborhoods in which the projects are located if low-income area businesses are used to help carry out the projects and if low- income area residents are employed in the construction and other activities related to the projects.
(3) Section 3 of the Housing and Urban Development Act of 1968, 12 U.S.C. § 1701u, as amended by Section 915 of the Housing and Community Development Act of 1992, P.L. 102-550, or any successor statute ("Section 3 of the HUD Act"), requires that economic opportunities generated by U.S. Department of Housing and Urban Development ("HUD") financial assistance in housing and community development projects will, to the greatest extent feasible, be given to low- and very-low income persons residing in the area in which the project is located, and to area businesses that provide economic opportunities to low- and very-low income persons.
(4) Specific housing and community development activities covered by Section 3 include construction, re- construction, conversion or rehabilitation of housing and other buildings or improvements, as well as related activities such as planning, architectural services, consultation, maintenance, repair and accounting.
(5) Compliance with the goals and spirit of Section 3 is necessary to help relieve unemployment and economic disinvestment in OHCD and DOC project areas.
(6) A Neighborhood Benefit Strategy will provide for effective implementation of and compliance with Section 3 regulations to the greatest extent feasible in its housing and community development activities carried out by OHCD and DOC and financed in any part by HUD funds.
For purposes of this Chapter the following definitions shall apply:
(1) Covered Project. A housing or community development construction or construction-related project funded by OHCD or DOC or their agents or designees, if such project is financed in any part by HUD funds.
(2) Low-Income Project Area Business. Any business:
(a) that is fifty-one percent (51%) or more owned by low-income project area residents; or
(b) whose permanent, full-time employees include persons, at least thirty percent (30%) of whom are currently low-income project area residents, or within three years of the date of first employment with the business were low-income project area residents; or
(c) that provides evidence of a commitment to subcontract in excess of twenty-five percent (25%) of the dollar award of all subcontracts to be awarded to businesses that meet the qualifications set forth in (a) or (b) of this definition of "low income project area business".
(3) Low-Income Person. Families (including single persons) whose incomes do not exceed the income ceilings established under Section 3 of the HUD Act for determining low-income status, or any public housing resident.
(4) New Hires. Full-time employees for permanent, temporary or seasonal employment opportunities.
(5) Project Area. The geographical area in which the persons benefitting from the project reside, as determined by OHCD or DOC, which geographical area shall not extend beyond the borders of the City, with respect to any funds expended in the City.
(6) Sponsor, Developer or Builder. Any entity which contracts to perform work generated by the expenditure of OHCD or DOC funds for housing or community development projects.
(1) Each project sponsor, developer or builder required by OHCD or DOC or their agents or designees, including the Philadelphia Redevelopment Authority ("RDA"), the Philadelphia Housing Development Corporation ("PHDC"), the Philadelphia Industrial Development Corporation ("PIDC") and the Philadelphia Commercial Development Corporation ("PCDC"), to submit an Affirmative Action Plan pursuant to Section 3 of the Housing and Urban Development Act of 1968, 12 U.S.C. § 1701u, as amended by Section 915 of the Housing and Community Development Act of 1992, P.L. 102-550, or any successor statue ("Section 3 of the HUD Act") or pursuant to local legislation or Executive Orders relating to affirmative action or equal employment opportunities, shall submit as part of that Affirmative Action Plan, a "Neighborhood Benefit Strategy", which shall describe the sponsor's, developer's or builder's proposed efforts to hire low-income project area individuals and businesses along with projected percentages of low-income project area resident new hires.
(2) The "Neighborhood Benefit Strategy" shall include, but is not limited to, the following elements:
(a) A projection of the specific goals for the employment of low-income project area residents, a list of the approximate number of contracts or subcontracts to be let to low-income project area businesses and their dollar value, and a list of materials and supplies anticipated to be purchased from low-income project area businesses; and
(b) A description of efforts that the sponsor, developer or builder has made to identify and contract with low-income project area businesses either as prime contractors or subcontractors on the project; and
(c) Where low-income project area businesses are available for a specific construction project but will not be used, an explanation of the reasons why these businesses are not being employed.
(3) Each project sponsor, developer or builder shall be subject to monitoring requirements as set forth by OHCD and DOC in order to monitor compliance with this Chapter. A project sponsor, developer or builder subject to the requirements of subsection (1) who fails to comply with those requirements shall not be considered "responsible" under subsection 8-200(1) of the Philadelphia Home Rule Charter in connection with future OHCD or DOC project bids. 130
(4) No later than December 31st of each year, the OHCD and DOC shall submit an annual report to the Mayor and Council President summarizing the components of the previous fiscal year's Neighborhood Benefit Strategies previously submitted, the degree of compliance with these strategies, and the extent to which contracting goals are met for new hires and low-income project area businesses. The annual report may also include recommendations to enhance and strengthen the effectiveness of the Neighborhood Benefit Strategy and compliance with Section 3 requirements or any other designated requirements.
Notes
| 130 | Amended, Bill No. 020827 (approved April 24, 2003). |
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