What is Section 3?
Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 that helps foster local economic development, neighborhood economic improvement, and individual self-sufficiency. The Section 3 program requires 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 in connection with projects and activities in their neighborhoods.
How does Section 3 promote self-sufficiency?
Section 3 is a starting point to obtain job training, employment, and contracting opportunities. From this integral foundation, coupled with other provided resources comes the opportunity for economic advancement and self-sufficiency.
How does Section 3 promote home ownership?
Section 3 is a starting point to homeownership. Once a Section 3 resident has obtained employment or contracting opportunities they have begun the first step to self-sufficiency. Home ownership is achievable. For more information visit the HUD website.
Who are Section 3 residents?
Section 3 residents are: public housing residents or persons who live in the area where a HUD assisted property is located and who have a household income that falls below HUD’s income limits.
Determining Income levels
Low income is defined as 50% or below the median income for that area. Very-low income is defined as 80% or below the median income for that area.
What is a Section 3 business concern?
A business that:
- is 51% or more owned by Section 3 residents;
- employs Section 3 residents for at least 30% of its full-time, permanent staff; or
- provides evidence of a commitment to subcontract to Section 3 business concerns, 25% 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 types of economic opportunities are available under Section 3?
- Job Training
- Any employment resulting from these expenditures, including administration, management, clerical support, and construction, is subject to compliance with section 3.
Who will award the economic opportunities?
Recipients of HUD financial assistance will award the economic opportunities. They, and their contractors and subcontractors, are required to provide, to the greatest extent feasible, economic opportunities consistent with existing Federal, State, local laws, and regulations.
Who receives training under Section 3?
For training and employment:
- Persons in public and assisted housing
- Persons in the area where the HUD financial assistance is spent
- Participants in HUD Youthbuild programs
- Homeless persons
- Businesses that meet the definition of a Section 3 business concern
How can businesses find Section 3 residents to work for them?
Businesses can recruit Section 3 residents in public housing developments and in the neighborhoods where the HUD assistance is being spent. Effective ways of informing residents about available training and job opportunities are: contacting local resident organizations, local community development, and employment agencies