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
Any employment resulting from these expenditures, including administration, management, clerical support, and construction, is subject to compliance with Section 3.
Examples of Opportunities Include: