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Section 3
Section 3 is a provision of the Housing and Urban Development Act of 1968, and is intended to ensure that recipients of certain HUD financial assistance, to the greatest extent feasible, provide job training, employment, and contracting opportunities for low- or very-low income residents or business concerns in connection with projects and activities in the community where the project is located.
What is a Section 3 Resident?
A “section 3 resident” is: 1) a public housing resident; or 2) a low- or very low-income person residing in the metropolitan area or non-metropolitan County in which the Section 3 covered assistance is expended.
What is a Section 3 business concern?
A business that:
- Is 51 percent or more owned by Section 3 residents; or Employs Section 3 residents for at least 30 percent of its full-time, permanent staff; or
- Provides evidence of a commitment to subcontract to Section 3 business concerns, 25 percent or more of the dollar amount of the awarded contract.
What programs are covered?
Section 3 applies to HUD-funded Public and Indian Housing assistance for development, operating, and modernization expenditures. Section 3 also applies to certain HUD-funded Housing and Community Development projects that complete housing rehabilitation, housing construction, and other public construction.
What are the types of economic opportunities under Section 3?
- Job Training
- Employment
- Contracts
Any employment resulting from these expenditures, including administration, management, clerical support, and construction, is subject to compliance with Section 3