​​​Phone # 574-295-8392

​​Fax# 574-293-​6878

​​​​​​​​​​Extensions:

LIPH  Staff

HCV Staff

​​​​Elkhart Housing Authority

1396 Benham Ave. Elkhart Indiana  46516

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.

Who are Section 3 residents?

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.

What is a Section 3 business & what types of economic opportunities are available under Section 3?

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
That 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


Who receives priority under Section 3?

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

For contracting:

Businesses that meet the definition of a Section 3 business concern

HUD SECTION 3 Program

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