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Construction Program Guide
Special Experimental Project No. 14 - FHWA/HUD Livability Initiative
In the June 25, 2010 edition of the Federal Register, FHWA published the Notice: "Livability Initiative Under Special Experimental Project No. 14" (http://www.gpo.gov/fdsys/pkg/FR-2010-06-25/pdf/2010-15438.pdf (.pdf)) The Notice announced FHWA's decision to permit States to request SEP-14 approval for contracting practices intended to enhance livability and sustainability as part of any project that is to be jointly funded with the Department of Housing and Urban Development (HUD).
For projects involving activities that otherwise meet the requirements for the use of FHWA and HUD funds, States may experiment under SEP-14 with combining these funding sources for single, integrated projects that are procured and bid under a single contract while complying with training, employment, and contracting requirements of HUD's Section 3, to the greatest extent feasible. The purpose of the experiment is to gauge the extent to which HUD funding may be used for highway projects, the effects on competition whenever HUD's economic opportunity requirements are used on a joint FHWA/HUD project, and the extent to which the alignment of FHWA and HUD requirements further livability.
In particular, SEP-14 is intended to permit a State DOT or Local Public Agency to experiment with the use of both FHWA and HUD finding sources in the same construction contract. These funding types would ordinarily be incompatible under a single contract; HUD's Section 3 requires that preferential hiring be afforded to those individuals living in the project area, but FHWA regulations prohibit preferential hiring. However, for contracts approved under FHWA's SEP-14 program, the prohibition on hiring preferences would be waived to accommodate only Section 3 requirements.
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