What is Section 3?

Section 3 is a provision of the Housing and Urban Development Act of 1968. The purpose of Section 3 is to ensure that employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, and consistent with existing Federal, State and local laws and regulations, be directed to low- and very low income persons, particularly those who are recipients of government assistance for housing, and to business concerns which provide economic opportunities to low- and very low-income persons.

Any contractor/developer working on a HUD funded housing, rehabilitation or public construction project is subject to the following numerical goals:

•Hire 30% or more Section 3 residents

•Award 10% of contract dollars to Section 3 businesses(hard cost)

•Award 3% of contract dollars to Section 3 businesses (soft cost)

These goals are triggered when the need to hire or to subcontract work is present. If there is no need, there is no goal to meet.

Why Get Certified as a Section 3 Resident or Business?

Section 3 helps low-income residents get the skills and jobs needed to become self-sufficient.

Section 3 also provides opportunities for qualified businesses to receive preference for HUD-funded contracts.


Interested in becoming Section 3 Certified?

Click here to apply.

Page last updated:  Friday, August 17, 2018 01:27 pm