WHO IN PUBLIC HOUSING WANTS TO BE A MILLIONAIRE?

 

Since 1997, I have trained hundreds of public housing residents on business development, help structure their newly formed business, guided those with existing small businesses toward professional protocols to be successful and have supported over 20 such Resident Owned Businesses (ROBs) across the country.  The most successful of such businesses earned more than $2,000,000 in their first two years in business providing PHA apartment turn-key and light fire-burn restoration and then branching out to do other small construction projects in the area.

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The HUD 24CFR Part 963 rule is the most dynamic, individual enrichment and self-sufficiency opportunity granted under any federal program.  It literally calls for PHAs to leverage this rule when seeking to let contracts as part of its normal procurement process.  My success in leveraging this very quietly kept rule, is credited to my clients who see resident income growth as a part of the agency’s overall fiscal health and a way to clear their waiting list by assisting current residents to grow economically and move out of pubic housing.  Please keep in mind, this rule only covers legal residents in good standing of public housing.  NOT Section 8!

 

My Small Business Development Training curriculum is geared only to public housing residents and has proven successful for over two decades.  I generally require my clients to provide start-up capital covering 90 days of operations including salaries, insurance and supplies as required.  My training only focuses on businesses that will/can provide services back to that agency.  Businesses that offer goods or services unrelated to public housing or its instrumentalities have no value under the 963 rule.

 

Rule Highlights:

1. The business must be legally formed meeting all local, state and federal requirements (Including Sole-proprietorships)

2. The business must be 51% owned and operated by PHA resident(s).  This does allow for partnerships where the ROB has 51% ownership

3. The business must have the ability to meet the contract requirements

4. The resident or resident organization must consists of PHA legal lease signatories

5. The business can not be awarded contracts exceeding $1,000,000 lifetime, however, there are ways to extend the success legally

6. No outside businesses can compete for the same contract against an ROB but other ROB’s within the same agency can compete against each other

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PART 963—PUBLIC HOUSING— CONTRACTING WITH RESIDENT-OWNED BUSINESSES 

Subpart A—General beginning with PHA fiscal years that commence on or after January 1, 2001.

Sec. 963.1 Purpose.

963.3 Applicability.

963.5 Definitions.

Subpart B—Contracting with Resident-Owned Businesses

963.10 Eligible resident-owned businesses.

963.12 Alternative procurement process.

AUTHORITY: 42 U.S.C. 1437 and 3535(d).SOURCE: 57 FR 20189, May 11, 1992,

 

 

 

 

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