HUD Section 3 Program
What is Section 3?
It is a means by which HUD fosters local economic development, neighborhood economic improvement, and individual self-sufficiency. Section 3 is the legal basis for providing jobs for residents and awarding contracts to businesses in areas receiving certain types of HUD financial assistance.
Under Section 3 of the HUD Act of 1968, wherever HUD financial assistance is expended for housing or community development, to the greatest extent feasible, economic opportunities will be given to Section 3 residents and businesses in that area.
Section 3 Policy
Congress established the Section 3 policy to guarantee that the employment and other economic opportunities created by Federal financial assistance for housing and community development programs should, if possible, be directed toward low- and very-low income persons, particularly those who are recipients of government assistance for housing.
Q: Who are Section 3 residents?
A: Section 3 residents are:
Public Housing Residents
Low and very-low income persons who live in the metropolitan area or non-metropolitan county where a HUD-assisted project for housing or community development is located.
Determining Income Levels
Low income is defined as 80% or below the median income of that area.
Very low income is defined as 50% or below the median income of that area.
Median incomes can be found using the American Fact Finder.
Q: What is a Section 3 business & what types of economic opportunities are available under Section 3?
A: A business that:
- Is at least 51 percent or more owned by Section 3 residents, whose permanent, full-time employees include persons, at least 30 percent of whom are currently Section 3 residents, or within three years of the date of first employment with the business concern were Section 3 residents, or
- Provides evidence of a commitment to subcontract in excess of 25 percent of the dollar award of all subcontracts to be awarded to a Section 3 business concern.
Types of Opportunities:
- Job Training
- Employment
- Contracts
Examples Include:
- Administrative/Management
- Services
- Construction
- Accounting
- Payroll
- Research
- Bookkeeping
- Purchasing
- Word Processing
- Appliance Repair
- Florists
- Marketing
- Carpet Installation
- Janitorial
- Photography
- Catering
- Landscaping
- Printing
- Computer/Information
- Manufacturing
- Architecture
- Bricklaying
- Carpentry
- Cement/Masonry
- Demolition
- Drywall
- Electrical
- Elevator Construction
- Engineering
- Fencing
- Heating
- Iron Works
- Machine Operation
- Painting
- Plastering
- Plumbing
- Surveying
- Tile Setting
Q: Who receives priority under Section 3?
A: For Training and Employment:
- Persons in public and assisted housing
- Persons in the area where the HUD financial assistance is expended
- Participants in HUD YouthBuild programs
- Homeless persons
To Apply for Employment:
Click here for the Section 3 Worker and Targeted Section 3 Worker Self-Certification Form (coming soon)
For contracting:
- Businesses that meet the definition of a Section 3 business concern
To Apply for Business Conern:
Click here for the Section 3 Business Concern Self-Certification Form (coming soon)
