PART 963—PUBLIC HOUSING—CONTRACTING WITH RESIDENT-OWNED BUSINESSES Authority: 42 U.S.C. 1437 and 3535(d). Source: 57 FR 20189, May 11, 1992, unless otherwise noted. Subpart A—General § 963.1 Purpose. The purpose of this part is to enhance the economic opportunities of public housing residents by providing public housing agencies with a method of soliciting and contracting with eligible and qualifed resident-owned businesses (as defined in this part) for public housing services, supplies, or construction. The contract award method provided by this part is based on the established procurement procedures set forth in 24 CFR 85.36 (as revised April 1, 2013), with solicitation as provided by these procedures limited to resident-owned businesses. The contract award method provided by this part is not a requirement. It is an alternative procurement method available to public housing agencies, subject to the conditions set forth in this part, and subject to permissibility under State and local laws. [57 FR 20189, May 11, 1992, as amended at 80 FR 75942, Dec. 7, 2015] § 963.3 Applicability. The policies and procedures contained in this part apply to public housing developments that are owned by public housing agencies (PHAs) and that are covered by Annual Contributions Contracts (ACC) with the Department. Public housing contracts eligible to be awarded under the alternative procurement process provided by this part are limited to individual contracts that do not exceed $1,000,000. Resident-owned businesses eligible to participate in the alternative procurement process are limited to those that meet the eligibility requirements of § 963.10. The policies and procedures contained in this part are consistent with the objectives of section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), and similar Federal requirements imposed on public housing programs. (See 24 CFR 941.208(a) and 24 CFR 968.110(a)). [57 FR 20189, May 11, 1992, as amended at 59 FR 33895, June 30, 1994] § 963.5 Definitions. The terms HUD Public housing agency (PHA) Act. Alternative procurement process. Annual Contributions Contract (ACC). Certification. Contract public housing contract. Management officials. Principal. Public housing public housing development. Public housing resident. Resident-owned business. (1) Which is at least 51 percent owned by one or more public housing residents; and (2) Whose management and daily business operations are controlled by one or more such individuals. All securities which constitute ownership or control of a corporation for purposes of establishing the business as a resident-owned business shall be held directly by the public housing residents. No securities held in trust, or by any guardian for a minor, shall be considered as held by the public housing resident in determining the ownership or control of a corporation. [57 FR 20189, May 11, 1992, as amended at 61 FR 5215, Feb. 9, 1996] Subpart B—Contracting With Resident-Owned Businesses § 963.10 Eligible resident-owned businesses. To be eligible for the alternative procurement process provided by this part, a business must meet the following requirements, and must submit evidence to the PHA, in the form described below, or as the PHA may require, that shows how each requirement has been met. (a) Legally formed business. (b) Resident-owned business. (c) Responsibility to complete contract. (d) Limitation on alternative procurement contract awards. [57 FR 20189, May 11, 1992, as amended at 59 FR 33895, June 30, 1994; 80 FR 75942, Dec. 7, 2015] § 963.12 Alternative procurement process. (a) Method of procurement. (b) Contract awards. (c) Contract requirements. [57 FR 20189, May 11, 1992, as amended at 80 FR 75942, Dec. 7, 2015]