Section 3 of the Housing and Urban Development Act of 1968 ensures that employment, training and contracting generated by certain U. S. Department of Housing and Urban Development (HUD) financial assistance shall, to the greatest extent feasible, be directed to low- and very low-income persons. This is particularly so for individuals who are recipients of government assistance for housing, and to businesses which provide economic opportunities to low-and very low-income persons.
Minimum Numerical Goals Include
- 30% of New Hires
- 10% of the dollar amount of Construction Contracts
- 3% of the dollar amount of Non-Construction Contracts
Who are Section 3 Residents?
- 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?
- A business where 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.
Please visit these sites for additional information:
Section 3 FAQ (PDF)