The Chicago Housing Authority awarded Old Veteran Construction in Chicago $47.4 million in three separate contracts last month to complete renovations on three CHA facilities.
As part of the contract, Jose Maldonado, president of Old Veteran, committed to hiring 36 CHA residents through the Section 3 program.
Under Section 3 of the Housing and Urban Development Act of 1968, HUD financial assistance must provide economic and employment opportunities to “low- and very low-income persons.”
The CHA goes on to require that 30 percent of new hires on Tier 1 construction and service contracts be Section 3. Three tiers exist for CHA contractors. Tier 1 includes general hiring, like Old Veteran.
Resident-owned businesses, wherein Section 3 residents own 51 percent stake, qualify as Tier 2. Only 10 percent of construction and three percent of service hires must go to Section 3 under this tier.
Tier 3 vendors provide training opportunities, scholarship money and elderly services in addition to 5 percent and 1.5 percent of new hires on construction and service respectively.
Maldonado expects to hire tuckpointers, masons and other skilled workers to complete jobs at three different sites. “Our goal is to fulfill and to also exceed it, if possible. Our goal is to try to put somebody into the union and try to put them to work.” Maldonado said.
The CHA issued an invitation to bid in December, which is the preferred method under federal regulation for procuring construction work. When the CHA issues an invitation to bid, it is required to accept the lowest bid from a responsive and responsible bidder.
Minority, women and disadvantaged business enterprises receive priority opportunities to gain contracts with federal money as mandated by the CHA. While it does not require bidders to qualify as one of the entities, the CHA does oblige awardees to contract between 25 and 40 percent on construction and 20 percent on materials, supplies and services.
“In 2011, there were 867 total new hires for CHA contracts, and, of that, 314 were new Section 3 hires, for a Section 3 new-hires percentage of 36 percent,” said CHA Media Relations Manager Matt Aguilar in an email.
Section 3 hires earn between $12 and $44 per hour, noted CHA Commissioner Adele Cepeda at the April 11 committee meeting. The bulk, she said, earn between $30 and $40.
Pan-Oceanic Engineering Co. won a $1.4 million contract in the same meeting to renovate fire lanes at Dearborn Homes, 2960 S. Federal St. Section 3 residents will comprise 40 percent of the five hires on the yearlong project.
Old Veteran Construction begins work on the first of three contracts on May 31 at Patrick Sullivan Apartments, 1633 W. Madison St. They will hire 21 Section 3 residents to complete window replacement and building façade work.
By A. Jabary Jefferson
May 02, 2012
Source: http://newsarchive.medill.northwestern.edu/chicago/news.aspx?id=204985
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