Section 3 Economic Opportunities

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.

Covered Programs

• 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 training materials and instructional videos related to Section 3 and Minority and Women Business Enterprises: Section 3 and Minority and Women Business Enterprise - Training Videos and Materials

Types of Economic Opportunities Available Under Section 3

• Job training
• Employment
• Contracts

Employment Opportunities

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:

• 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
• Word Processing