Economic Inclusion

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.

How does Section 3 promote 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

How does Section 3 promote homeownership?
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.
Who are Section 3 Residents?
Section 3 residents are:

• Asset Management residents or
• Persons who live in the area where a HUD-assisted project is located and who have a household income that falls below HUD’s income limits.

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.

What is a Section 3 business concern?
A business that:

• Is 51 percent or more owned by Section 3 residents;
• Employs Section 3 residents for at least 30 percent of its full-time, permanent staff; or
• Provides evidence of a commitment to subcontract to Section 3 business concerns, 25 percent or more of the dollar amount of the awarded contract.

What programs are covered?
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.

What types of economic opportunities are available under Section 3?

• Job training
• Employment
• Contracts

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 Word processing

Related Documents

• Section 3 Business Concern Certified Companies
• Section 3 Business Registration Form
• MBE-WBE Business Status Form

CMHA is committed to provide procurement, contracting and economic opportunity to Minority Business Enterprises (MBE).  Diversity is crucial to CMHA’s mission of promoting self- sufficiency throughout our community.  CMHA promotes this by ensuring at least 20% of all contracts are awarded to Minority Business Enterprises.    In fiscal year 2016 CMHA awarded 38% of all contracts to MBE’s for a total of over $12 Million.  A MBE must be owned or controlled by at least 51% by a minority to be considered.

CMHA spends more than $20 million each year in construction, professional services, and supplies and services.  To further drive our economic inclusion values, we set goals that meet and/or exceed HUD’s minimum goals.  CMHA is continually evolving, creating quality housing opportunities to families, seniors, veterans and other individuals who need assistance.  With this growth come opportunities for Women Owned Business Enterprises (WBE).  WBEs have a large economic impact on our community and CMHA is committed to promote this impact by ensuring 5% of all contracts are awarded to Women Owned Business Enterprises.    A WBE must be owned or controlled by at least 51% by a woman to be considered.

CMHA's vision is to shape our future by utilizing sustainable funding models to develop quality affordable housing solutions in partnership with our community stakeholders. RAD (Rental Assistance Demonstration) allows CMHA to convert public housing assistance to long-term project-based Section 8 contracts, providing a more stable source of funding and providing an opportunity to invest millions, potentially a billion dollars, into properties at risk of being lost from the nation’s affordable housing inventory.

The purpose of “Building for the Future” is to prepare small, minority and women-owned businesses, as well as Section 3 and Resident owned businesses for RAD (Rental Assistance Demonstration) implementation and help them to compete for subcontracts with large contractors for the RAD Projects.

The first meeting with Section 3, MBE and WBE businesses was held on November 4, 2016.

• Presentation
• Attendees

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