Subcontractor Support Program 

Los Angeles Housing Compliance (LAHC) is committed to supporting Minority Owned, Women Owned, Disabled Veteran Owned and Section 3 Subcontractors develop and maintain successful construction businesses within the Los Angeles community. 

Please allow us to provide a proposal for your next project, to provide target businesses the opportunity to successfully bid and compete, with a focus on the following core curriculum and resources: 

Subcontractor Workshop Series 

Series will include these topics. They would be spread over three (3) workshops, (2) hours each. 

Small Business Set Up (insurance, marketing and certifications).

How to Bid Work (bid board access, proposal preparation, submission, follow up tactics).

I won the bid! Now what?  (subcontract review, change order review, certified payroll and payment applications). 

Section 3 Subcontractor Support Fund- Proposed per Project 

Section 3 subcontractors often struggle due to long payment cycles which affects the project schedule and completion. On a prevailing wage project, Section 3 businesses inevitably carry tremendous payroll liability + supplier costs. To resolve this issue, LAHC is offering the design of a revolving loan fund, the Section 3 Subcontractor Support Fund. 

Participating, qualifying subcontractors that have properly submitted their invoices and all other requirements for payment as evidenced and approved by the general contractor, can request early payment through escrow. Once the project's payment application is funded (often 60 days+ from invoice submission), the fund will be replenished. This will alleviate the long pay terms that small businesses cannot bear. This program will be at zero (0%) cost to the subcontractors. 

Developers will include the Section 3 Subcontractor Support Fund cost in their project budgets. Escrow will be funded with first payment at initial construction loan close. Developers will cover these additional fees as a project cost and Section 3 good faith tenet. Typical costs would include: 

Initial Deposit as determined by the project type and size (i.e. $500k)

Escrow & all other associated fees.