Section 3 is a provision of the Housing and Urban Development 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 Housing and Urban Development 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 Promotes Self-Sufficiency
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.
- Federal, state and local programs
- Advocacy groups
- Community and faith-based organizations
Section 3 Promotes Homeownership
- It is a starting point to homeownership because once a Section 3 resident has obtained employment or contracting opportunities they have begun the first step to self-sufficiency.
Section 3 Residents
- Public housing residents, or
- Persons who live in the area where a Housing and Urban Development assisted project is located and who have a household income that falls below Housing and Urban Development's income limits
Determination of 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.
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.
- Section 3 applies to Housing and Urban Development funded Public and Indian Housing assistance for development, operating and modernization expenditures.
- Section 3 also applies to certain Housing and Urban Development funded Housing and Community Development projects that complete housing rehabilitation, housing construction and other public construction.
Section 3 and Minority and Women Business Enterprise - Training Videos and Materials
The department provides several training materials and instructional videos related to Section 3 and Minority and Women Business Enterprises.
Types of Economic Opportunities 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. Examples of employment opportunities include:
- Appliance repair
- Carpet Installation
- Cement / Masonry
- Computer / Information
- Elevator Construction
- Iron Works
- Machine Operation
- Printing Purchasing
- Tile Setting
- Word Processing