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Hud Form 60002: Draft, Finish and share

hello and welcome to today's training on.HUDs News section 3 reporting system my.name is Stacy Gilliam and I am the.director of HUDs Economic Opportunity.division the office that's responsible.for the administration and oversight of.HUDs section three requirements recently.the nation commemorated the 50th.anniversary of the march on Washington.for Jobs and Freedom one of the many.events of the civil rights era that laid.the foundation for Congress's passage of.the section 3 Act section 3 for those of.you who don't know is section 3 of the.Housing and Urban Development Act of.1968 it was born out of dr. King's war.on poverty the Poor People's Campaign.and the march on poverty that took place.in the wake of the assassination of dr..King dr. King and his successors were.aware that poverty affects persons of.every race gender and nationality and.especially veterans in persons with.disabilities they also knew that having.an honest job that pays decent livable.wages is the ultimate civil right.section 3 was designed to level the.playing field for the working poor as.one of my colleagues likes to say it's a.hand up not a handout.it gives low-income workers the.unmeasurable sense of dignity that comes.from a hard day's work HUD is one of the.largest sources of federal dollars in.communities across the country our.recent annual budget was more than 70.billion dollars just about every local.Road improvement infrastructure project.multifamily housing property community.center library or park has some HUD.funding in it the purpose of section 3.is to ensure that when HUD is building.something in your community with your.tax dollars.local residents with the greatest.economic needs and the businesses that.employ them receive preference for HUD.funding.employment training and contracting.opportunities section 3 is unique to HUD.and holds our agency to a higher.standard for ensuring that HUD money.does more than bill decent safe and.sanitary housing it also builds.self-sufficient residents who are.actively involved in improving their.communities.section 3 creates a multiplier effect.for HUD dollars because these funds.ultimately become local contracts and.wages that allow residents to buy goods.and services in their community become.first-time homeowners get a college.education or otherwise invest in the.local economy in recent years HUD has.increased its efforts to improve the.overall effectiveness of section 3 the.agency has increased the percentage of.section 3 reports submitted annually.from 20% to nearly 80 percent in 2010.funding was provided to 12 agencies to.hire section 3 coordinators for one year.in 2011 HUD launched the section 3.business registry pilot program in five.metropolitan areas and over the past.five years more has been done to.strengthen section three enforcement.actions and to provide training and.technical assistance to help grantees.meet their obligations the new section 3.reporting system that will be described.today is one of the department's latest.attempts to improve the administration.and oversight of section 3 it was.developed in response to the.frustrations that many of you.experienced with the former system and.is designed to reduce administrative.burden decrease user errors and ensure.that grantees are submitting reports for.all covered HUD funding that they spend.each year this new system is the first.of several phases of enhancements to the.section 3 reporting system that HUD will.be implementing over time I hope that.you will find today's training very.formative and then HUDs news section 3.reporting system addresses the.challenges that you may have experienced.in the past after today's session this.training will be archived and a link.will be posted on the section 3 web page.I'd also like to encourage you to submit.questions about the news section 3.reporting system via email to 60002.questions at hud.gov that's six three.zeros the number two questions at.hud.gov with that I'd like to turn this.training over to today's presenter Rafiq.lanier Rafiq is one of the senior.program analysts in HUD section three.division he brings more than 20 years of.HUD experience to today's training half.of which has been devoted to carrying.out the mission of section 3 Rafiq.welcome and thank you for joining us.today it is my pleasure to present our.new section 3 summary reporting system.also known as the 60002 system it has.been a long time coming and I am happy.to introduce this new release I'd like.to acknowledge the leadership of this.endeavor to the director Stacie Gilliam.also I would like to take this.opportunity to acknowledge will Brandt.and 9:18 from our information technology.office for bringing this project to.completion the agenda today will include.an overview of section 3 reporting.limitations of the existing system.highlights of the new system and example.submissions on the new system and a.discussion of the transition process for.her grantees forum HUD 60002 is the.designated reporting instrument to.capture or summarize a grantees.employment training and contracting.activity covered by section 3 submission.of form HUD 60002 was initially.automated through an online reporting.system developed over a decade ago.in the late 1990s since that time.several minor patches or tweaks were.issued to address recurring problems and.shortcomings but until now never a.comprehensive overhaul section 3 is HUDs.job creation program its purpose is to.ensure that economic opportunities in.the form of jobs training and.contracting are directed to low and very.low income persons especially those that.receive federal assistance for housing.such as public housing residents and.section 8 voucher holders with increased.departmental emphasis on enforcement for.compliance with the requirements of.section 3 in recent years reporting has.become more critical for effective.monitoring and tracking a programmatic.trend on a local state regional and.national basis from a national.perspective data submitted for fiscal.year 2012 by HUD grantees or direct.recipients of HUD funding including but.not limited to help public housing.authorities state and local governments.areas that were hit by natural disasters.competitive grant programs such as.lead-based paint abatement and housing.for low-income elderly and disabled.persons as well as funding awarded to.nonprofits to address other community.needs indicated nearly 60,000 new jobs.forty eight percent were nearly half of.these new jobs were obtained by section.3 residents defined as local low-income.persons during the same period these.agencies reported 8.7 billion in.construction contracts 823 million of.which were awarded to approximately.5,000 section 3 businesses those that.substantially employed local low and.very low income persons the single most.significant change or improvement.provided by the new system and I repeat.the single.significant change or improvement is the.direct link to Hertz line of credit.control system or locks locks is the.department's checkbook that provides.real-time financial tracking of all.expenditures or drawdowns by grantees or.recipients of HUD funding locks.currently provides disbursement controls.for over a hundred HUD programs and.disperses over twenty billion to.thousands of HUD business partners.annually this link is essential for.recording section three activity because.it's it is the expenditure of funding.not the award of funding that generates.or creates jobs and training for section.3 residents and contracts for section 3.businesses to expedite the release of.the new system there are no new or.additional questions and those found in.the old system we have however dropped.reference to amount of award again.because it is the expenditure of funding.that creates opportunities due dates for.reporting will remain the same the.reporting period for all grantees will.coincide with the federal fiscal year.October 1st to September 30th consistent.with financial data extracted from locks.since many grantees or recipients of HUD.funding manage or administer multiple.programs the new system facilitates.multiple submissions you no longer have.to exit the system to submit additional.reports another important feature is.that the new system will prevent.submission of a form without an.explanation in cases where the minimum.numerical goals are not met the goals of.section 3 30% for employment 10% for.construction contracting and 3% for non.construction contracting must be met to.the greatest extent feasible if it is.not feasible a grantee or recipient at.her.funding must explain why it was not.feasible to do so it is important for.recipients of section 3 coverage funding.to document their good faith efforts.when they fail to reach the minimum.numerical goals such explanations could.include a description of past attempts.to register and certify residents and.businesses from providing updates of.sponsors job fairs attempts to.collaborate with local business.associations partnerships with community.colleges and vocational education.institutions or a description of.procedures to discuss the requirements.of section 3 at pre big contract.meetings a reasonable explanation will.demonstrate compliance with section 3.when the grantee falls short of reaching.the employment and contracting goals.other features added to the new system.include safeguards against incomplete.reporting and alerts for shortfalls and.reaching the numerical goals last but.not least the new system will accept.reports from direct recipients of HUD.funding only to summarize the old system.was developed with outdated software.emphasized the amount of award instead.of expenditures allowed incomplete.reporting was prone to failure and.Confused users about how to enter data.the new system was developed with.current web-based software utilizes a.direct link to locks cuts financial.reporting system incorporates safeguards.against incomplete reporting and.facilitates multiple submissions for.grantees that administer several.programs with no further ado let's.explore the new system to accomplish.this we will review a series of.screenshots of sample report submissions.if your agency is highlighted don't be.alarmed these are just examples to.access the news.click on the new link posted to the.section 3 webpage we will use the city.of Houston Texas Neighborhood.Stabilization program or NSF for the.first example upon entry the first page.is the agency selection page you will.note that there are three tabs at the.top left of the form that provides.instructions access to frequently asked.questions or FAQ s and a link to email.questions under the tab contact us the.email setup for questions specific to.the new system is sixty thousand two.questions at hud.gov once the state city.and agency have been selected the user.will select continue to proceed to the.next screen the agency profile page this.page displays the recipient name address.city state zip code on the left side.this information is pre-populated with.data extracted directly from locks it.cannot be altered this billing address.may differ from the physical address of.the grantee on the right side is contact.information including name of the person.completing the form or other designated.contact telephone and fax number and.email address this information may or.may not be pre-populated with data.extracted from the old system you can.update the information when necessary if.it is blank fill in the contact.information and select continue to.proceed to the agency expenditure.summary page this page outlines a total.expenditure during the respective.reporting period for each program that.the grantee administers it is extracted.directly from locs and provides a.listing of program codes to the left.The Associated program name and the.total drawdown amount or expenditure.or reporting for the reporting period.initially only financial data will be.displayed for federal fiscal year 2013.the period from October 1 2012 to.September 30 2013.section 3 covers a variety of HUD.programs displayed in this example are.10 codes that we have determined are.potentially covered by section 3 the.emergency shelter grant or ESG program.would be covered only if some portion of.it was used for construction or.rehabilitation of a homeless shelter.the second line ec1 or entitled cities.is a Community Development Block Grant.Program or CDBG the same criteria would.apply construction rehabilitation and.other public construction such as.infrastructure are the three areas of.activity covered by section 3 for all.Housing and Community Development.programs or non public housing programs.for public housing programs section 3.covers a broader spectrum of activity in.addition to expenditures for.construction rehabilitation and other.public construction expenditures for.day-to-day operations are covered as.well as a public housing authorities.operating such subsidy account.this would include positions funded from.this account every from everyone from.clerical support staff to the executive.director as well as expenditures for.routine maintenance landscaping.janitorial services accounting legal.services and heating and ventilation.once a report is submitted a notation.will appear at the bottom left of the.page in the area labeled agency.submission summary 2013 it is blank.because no reports have been submitted.the user selects start report to proceed.to the new hire page from the new hire.page the user selects the neighborhood.stable.zatia program or NSP with an expenditure.of six million ninety one thousand seven.hundred three dollars at the top of the.page in the small box the new higher.page allows the user to enter data on.the number of all new hires section.three new hires section three trainees.as well as the optional column to enter.the percentage of staff hours for.section three employees again this.column is optional the user can select a.job category or describe one not listed.in this example the grantee has exceeded.the employment goal at 30.8% once.completed to the user satisfaction the.user selects continue to proceed to the.contracting page similar to part two of.the old system the user enters data or.construction and non-construction.contract in this example the 10% goal.for construction contracting has been.exceeded but the three percent goal for.non construction contracting has not.been reached at 2.5% proceeding to the.summary page the user will see all the.data previously entered and an.indication regarding compliance with the.numerical goals in this example.employment and construction contracting.goals are met but the non construction.goal has not met the user will be.alerted to enter an explanation on the.following compliance page in this.example an explanation has been entered.at the bottom of the page to describe.why the non construction goal was not.met the user proceeds to the.certification page and has the option of.printing a PDF copy of the report before.final submission the report is complete.only after the user submits the report.for our next example we will use a.public housing authority specifically.the india nap.housing authority from the agency.selection page the user has made the.selection and proceeds to the agency.profile page after verifying the contact.information is correct the user proceeds.to the agency expenditure summary page.you will note on the second line that.the operating subsidy account is called.the performance funding system coded PFS.in the lock system the third line lists.a supplemental hardship operating.account and the last line shows funding.for the resident opportunity supportive.services program or Ross next the user.proceeds to the new hire page from the.box labeled program code-named near the.top left under agency name the user.selects the capital fund program or CFP.with an expenditure of 2.2 million and.selects continue without entering any.employment data this time however an.alert pops up to advise that the.explanation will be required on the.compliance page the user enters five new.hires and ten section three new hires.since section three new hires is a.subset of all new hires the error.prompts another alert the user corrects.the error and proceeds to the.contracting page this time the user.enters 1 million dollars for total.construction contracts and five million.dollars for section three construction.contracts an alert pops up since the.latter is a subset of the former the.user corrects the error but interests.5,000 for the number of section 3.businesses receiving construction.contracts another alert pops up the user.corrects the error and proceeds to the.summary page after review the user.proceeds to the compliance page but.first is alerted that two of the three.goals were not met.and an explanation will have to be.provided the user proceeds to the.compliance page and then attempts to.skip to the certification page without.providing an explanation.that completes our second example we.presented scenarios with a variety of.errors to demonstrate The Associated.alerts and warnings that would prevent.the submission of erroneous reports.resulting from bad logic these say.safeguards were put in place while the.system was under development an added.benefit is that they address findings.from a recent audit conducted by HUDs.office of the inspector general to recap.these measures serve to prevent Iranian.entries by facilitating complete.reporting for all program expenditures.checking that section 3 hires remain a.subset of all new hires checking their.section 3 contracting is less than or.equal to the total contracting limiting.the number of section 3 businesses and.prevents submission of reports that do.not meet section 3 employment or.contracting numerical goals without an.explanation future enhancements will.include a password protection features.users users will be properly notified of.the change in advance the old system has.been deactivated the new system is.available now you can access the new.system from a link posted on the section.3 web page at www.cerritos.edu submit.reports with existing annual performance.reporting schedules the reporting period.for everyone coincides with the federal.fiscal cycle again October 1st to.September 30th data has been uploaded.for 2013 and will be updated annually.we'll be provided as time and resources.permit again we ask our viewers to post.questions at sixty thousand to hud.gov.the slides used during the today's.presentation will be posted on the.section three website for your reference.we encourage the audience to review the.FAQ document on the section 3 website.for general questions about section 3.grantees should keep in mind that all.reports are to be submitted.electronically paper forms are no longer.acceptable now let's address some of the.questions that have come in first.question when will the new system become.available the new system is scheduled to.be available this Friday December 20th.follow the link on the section 3 webpage.at WWF / section 3 ok next question what.type of software will be required to use.the new system the system has been.tested to work with Internet Explorer.version 8 as well as Firefox version 25.it should work with other browsers as.well if you experience any difficulties.contact us at sixty thousand two.questions hud.gov alright next question.what will be done if my agency is not.listed the information is pre-populated.on the system and extracted from HUDs.line of credit control system or locks.it makes reference to the billing.address for financial transactions if.you do not locate your agency contact.our office for assistance.next question what should we do when the.funding listed is not covered by section.3 if some or all of the funding listed.for a particular program was not used.for a section 3 covered activity provide.an explanation on the compliance page in.the comment box at the bottom next.question how do we update pre-populated.agency information this information is.used for financial transactions with.your agency contact your financial staff.to discuss any changes needed next.question how do we report projects.funded by allocations from multiple.years the funding information presented.on the agency expenditure page is the.amount drawn down during the current.fiscal year regardless of when the award.or allocation was initially awarded we.are looking for employment and.contracting generated from funding.expended during a reporting period many.of these questions will be incorporated.in our FAQ document as part of the.guidance material ok next question my.understanding is that section 3 covers.HUD funded projects both fully or.partially funded or leveraged with state.local or private funding how do we.report on the non HUD funded portion.that's a great question the new system.will allow reporting of total project.expenditures HUD funding as well as.leveraged non HUD funding for mixed.finance projects the amount entered on.the contracting page can exceed the.total drawdown amount for the particular.program funding source in question this.will facilitate reporting on projects.using two or more sources of funding.as well for example you could report on.a project funded with Neighborhood.Stabilization funds or NSP funds.supplement it with block grant funding.or CDBG funding just make a notation on.the compliance page to explain a future.release of the section 3 reporting.system will accommodate more detailed.reporting or mixed finance projects.regarding project expenditures grantees.are reminded that once the cumulative.total that appears in red on the agency.expenditure page exceeds $200,000 all.section 3 covered activity construction.rehabilitation and other public.construction for Housing and Community.Development grantees is covered.regardless of project size for public.housing authority there are no.thresholds and section 3 covers a.broader broader spectrum of activity.including maintenance and day-to-day.operations for more information refer to.the FAQ document on the section 3.webpage ok getting back to questions.regarding reporting let's let's explore.the next question since PHAs report on a.calendar year basis my previous report.covered January 1st to December 31st.2012 my understanding is that the new.system requires reporting to coincide.with the federal fiscal cycle October.1st to September 30th should I report.section 3 outcomes this year based on.the 9 month period from January 1st to.September 30th 2013 to avoid double.counting of outcomes another excellent.question since we are transitioning to a.new system all reports submitted for.2013.and beyond should be based on the.federal fiscal cycle October 1st to.September 30th to the extent we.experience some double counting with.past reports that's an acceptable.trade-off for consistency among all.grantees remember reporting due dates.have not changed let's review a few more.questions.I've heard that HUD has new regulations.for section 3 how does that affect.reporting we are operating under the.current set of regulations when new.regulations are finalized for public.comment a notice will be posted in the.Federal Register ok next question will I.be able to make corrections to.previously submitted reports at this.point in time you will have to contact.our office for Corrections or.resubmissions the same way it was.handled in the old system once IDs and.passwords are incorporated into the new.system you may have more control over.report submissions on to the next.question will the reports be posted for.public review in the spirit of.transparency we are working on a.procedure to proposed summary.information by grantee on our website.please stay tuned next question under.the new hire section should we include.staff transferred to new positions or.just new hires you should report new.hires only personnel transfer to.different positions are not considered a.gain and overall net employment will.entertain one more question for now what.should we do if there were no new.section 3 new hires.or no Awards to section 3 businesses you.should provide a reasonable explanation.of your best efforts to hire section 3.residents and to award contracts to.section 3 businesses on the compliance.page in the comment box provided if you.had a burning question that was not.answered today we will get back to you.as soon as possible.again I'd like to thank everyone for.joining us today.I'm told that we hosted over 1400.participants for today's broadcast.that's outstanding this webcast will be.archived for those who did not get an.opportunity to view the webcast today.for future updates regarding training on.section 3 consider joining the section 3.mailing list directions are posted on.the section 3 webpage at WWF forward.slash section 3 we look forward to.receiving your reports in the new system.as with any significant change we.anticipate some minor problems during.the transition again the new system.represents a major step towards.effective administrative oversight of.section 3 with the provision of.expenditures by program funding directly.from the department's financial.accounting system we look forward to.working with all of you to provide.economic opportunities to those that.need it most.thank you that concludes our training.today.you.

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Hud Form 60002 FAQs

Here are some frequently asked questions along with their answers to clear up the doubts that you might have.

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