Pursuant to an administrative complaint, HUD determined that the City of Long Beach had not fulfilled its Section 3 obligations pursuant to $40 million Section 108 loan for the dredging and construction of a major downtown harbor. As a result, Long Beach agreed to a restitution plan, which obliged it to: provide at least 3000 hours of work to low-income Long Beach residents on City-funded construction projects, provide pre-apprenticeship construction training and post-training apprenticeship placement assistance, and implement a $3.2 million small business incentive program to encourage contractors to use Section 3 businesses in the construction of future projects. The advocates in Long Beach were also simultaneously able to negotiate a related settlement, the Pike Agreement, and obtain a commitment for jobs for the lowest income workers.
Letter from Carolyn Peoples, HUD Assistant Secretary for Fair Housing and Equal Opportunity, to Heather A. Mahood, Long Beach, CA, Deputy City Attorney (Apr. 26, 2004), regarding Carmelitos complaint.
Pike Agreement. This agreement was entered into with the City of Long Beach regarding Section 3 compliance pursuant to other development activities during the time that the Carmelitos Administrative complaint was pending.