Big Ideas for Small Business: Codified Ordinance, Chapter 188 Fannie Mae Lewis Cleveland Resident Code


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Big Ideas for Small Business: Codified Ordinance, Chapter 188 Fannie Mae Lewis Cleveland Resident Code

  1. 1. Presentation to the Economic Inclusion Management Committee City of Cleveland Office of Equal Opportunity Codified Ordinance, Chapter 188 Fannie Mae Lewis Cleveland Resident Code March 28, 2013
  2. 2. Chapter 188  Legislation was originally passed 6-10-2003  Law became effective 1-1-2004  Outcome of law  All public improvement construction projects greater than $100,000 must:  Utilize Residents for 20% of all Construction Worker Hours; and  Utilize Low Income Residents in 4% of that 20% requirement
  3. 3. Resident & Low Income  Residents must live within the confines of the City of Cleveland;  Low Income Residents must fall under the HUD “very low income” bracket and reside within the City of Cleveland boundaries. To be considered Low Income, an application must be filled out (and approved) by our office.  Unintended Consequences  Some contractors were hiring low income workers for a period of one year and subsequently firing them when they earned too much to be low income. This created an unwanted cycle of employment/unemployment for the people it was meant to help.
  4. 4. Changes to the law  In 2010, OEO came together with City Council, Contractors, and other Departments to amend portions of the Fannie M. Lewis Law  Low Income Status:  A low income person may retain their low income status (regardless of income) for a period of no longer than five years.  Stipulations:  Must remain employed with the contractor they applied under  Must remain a City of Cleveland Resident
  5. 5. Associated Hours  “Associated Hours” are the City’s measure for allowing a bit of leeway in the Resident portion of the law. This allows contractors to count Residents from non-City projects towards their current project  Eligibility:  If a contractor has another project that is ongoing at the same time as the City project and was not funded by the City  Residents or Low Income workers were used on that project  The project has not been used to supplement any other City project.
  6. 6. Consequences of Violation  Any contractor that does not adhere to the Fannie M. Lewis law is subject to a monetary penalty and potential disbarment from City bids  (1/8)*(1%)*(Contract amount)*(# of shortfall points)  If a contractor missing all of the requirement, this amounts to 2.5% of the total contract amount.
  7. 7. Contact Information Natoya Walker Minor Chief of Public Affairs & Director Office of Equal Opportunity Shanelle Johnson Certification Administrator Lynn Peculis Diversity & Inclusion Evaluator
  8. 8. Thank you!