The Stimulus bill, HUD Act and you

The Stimulus Bill is a reality. As House Majority Whip James Clyburn stated, "The President and Congress have made this happen. That was our job, and now you [businesses and advocates] must approach your governors and mayors and make it happen for your particular community or interest."That is so profound and accurate. We must get active to make it happen.

The first money to come out of the Stimulus Bill is from the U.S. Department of Housing and Urban Development (HUD). The implementation of Section 3 of the HUD Act can make this opportunity a reality in our urban communities and provide serious business development for our entrepreneurs and vast job opportunities for our people.

This law has been on the books since 1968 after the first Watts riot of 1965. It was strengthened in 1992 after the Rodney King riot. I sure hope we do not have to burn down Los Angeles one more time for it to actually be implemented.

Most communities, including Los Angeles, do not abide by the law and opportunities are missed. One would think large organizations such as the NAACP or Urban League would champion this but that would conflict with their love of construction unions. You can't love construction unions and support Black employment or business development. When you are addicted to union money you will find your mission weakening.

Since 1998 the National Black Chamber of Commerce has begun an intensive campaign to get communities to comply with this law. The law states that if you receive HUD funding (cities, counties, states, housing authorities, etc.) 30 percent of the new jobs created by that funding must go to people living below 80 percent of the national medium-income level such as public housing residents, low-income and very low-income people.

Ten percent of the contracts created by the HUD money are to go to Section 3 businesses (those hiring Section 3 residents per the Act).

When we started to move on it, only 3 of the 5,000 HUD grantees were in compliance. Today, there are about 1300 responders out of the 5,000 grantees.

Thus, we are not even half way there and important cities like Los Angeles, Detroit, Cleveland, Chicago, Baltimore, Philadelphia and Atlanta haven't even begun. One of the largest cities in compliance is New Orleans. Seventy-five percent of its population is back after Katrina, and Section 3 residents are being snapped up by Section 3 businesses. As the nation approaches an average of 10 percent unemployment, New Orleans is at 5 percent. Section 3 makes a difference!

Each city, county, state (Governor's Office) and public housing authority doing more than $500,000 in funding for a fiscal year must prepare and submit a '5 Year Consolidated Plan.' This is a forecast on how you are going to recruit, hire and contract with Section 3 residents and Section 3 businesses and how you are going to make regular contractors hire Section 3 residents. In essence, it is a strategic plan.

Next, each grantee has to prepare an Annual Action Plan at the beginning of each fiscal year specifying immediate projects and programs.

After 12 months, a third report -- the Consolidated Annual Performance Evaluation Report (also known as The CAPER) -- is due.

Finally, for each grant there must be an 'A-133 Audit.' Included in this audit is the 60002 Report. This report details the activity of Section 3 in regards to the grant implementation. Remember, nearly 75% of HUD grantees are not doing these reports.

It will be the NBCC mission to police this and enforce it. Right now, HUD doesn't have the manpower to adequately do it. Failure to comply with Section 3 can lead to sanctions and the freezing of HUD funding for those out of compliance. Our chapters and sister organizations should get very busy on this.

For those of you who want to track the HUD money in the Stimulus Bill please go to www.hud.gov/recovery and click 'funding by state.' Check on it every week or so and you can track the actual money coming to your town. Make sure Section 3 is complied with.

Alford is the co-founder, President/CEO of the National Black Chamber of Commerce. Website: www.nationalbcc.org.