City staff outlines Section 3 requirements after $500,000 TDRA sewer grant awarded

A staff representative told the Floresville City Council the city has been awarded a $500,000 grant through the Texas Department of Agriculture to fund sewer improvements on Blue Line and Buttercup Lane and explained the Section 3 compliance obligations that accompany the grant.

The staff member explained the funding mechanism and compliance: the grant is part of a Community Development Block Grant (CDBG) program and, as a condition of funding, the city must comply with Section 3 of the Housing and Urban Development Act of 1968 to the “greatest extent feasible.” The staff member said recipients must direct economic opportunities arising from the project toward low‑ and very low‑income persons and businesses and described how the city and its engineers will publicize contracting opportunities to Section 3‑eligible firms and workers.

Staff explained qualification criteria for Section 3 businesses (for example, ownership by low‑income individuals, residence in Section 8 assisted housing, or where 75% of labor hours in a 3‑month period are performed by Section 3 workers). The presentation noted that targeted outreach and posting on Section 3 business opportunity websites will occur when the city solicits bids; staff said tracking of Section 3 hours will be performed by the grant administrator through contractor payrolls and payroll reporting.

Staff said engineering contracting is under way and construction is expected in the fall or early next year; the city will track hours and report them to the Texas Department of Agriculture as required by the grant.