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.
Section 3 is a starting point to obtain job training, employment and contracting opportunities. From this integral foundation coupled with other resources comes the opportunity for economic advancement and self-sufficiency.
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.
Remember, “It doesn’t have to be fields of dreams”. Homeownership is achievable. For more information visit our HUD website.
Section 3 residents are:
Low income and very low income levels, which are defined as follows:
A business that:
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.
Any employment resulting from these expenditures, including administration, management, clerical support, and construction, is subject to compliance with Section 3.
Examples of Opportunities include: Accounting, Architecture, Appliance repair, Bookkeeping, Bricklaying, Carpentry, Carpet Installation, Catering, Cement/Masonry, Computer/Information, Demolition, Drywall, Electrical, Elevator Construction, Engineering, Fencing, Florists, Heating, Iron Works, Janitorial, Landscaping, Machine Operation, Manufacturing, Marketing, Painting, Payroll Photography, Plastering, Plumbing, Printing Purchasing, Research, Surveying, Tile setting, Transportation, and Word processing.
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, and local laws and regulations.
Businesses that can receive contracting must meet the definition of a Section 3 business concern
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:
Recipients are required, to the greatest extent feasible, to provide all types of employment opportunities to low and very low-income persons, including permanent employment and long-term jobs.
Recipients and contractors are encouraged to have Section 3 residents make up at least 30 percent of their permanent, full-time staff.
A Section 3 resident who has been employed for 3 years may no longer be counted towards meeting the 30 percent requirement. This encourages recipients to continue hiring Section 3 residents when employment opportunities are available.
There is a complaint process. Section 3 residents, businesses, or a representative for either may file a complaint if it seems a recipient is violating Section 3 requirements are being on a HUD-funded project.
Yes. HUD monitors the performance of contractors, reviews annual reports from recipients, and investigates complaints. HUD also examines employment and contract records for evidence that recipients are training and employing Section 3 residents and awarding contracts to Section 3 businesses.
You can file a written complaint with your local HUD Field Office. A written complaint should contain:
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