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What you need to know about Section 3

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What is Section 3?

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:

  • Public housing 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.

Section 3 business concern

  • 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

Weekly Address: Making Our Communities Stronger Through Fair Housing

The President discusses a new rule announced by his Administration to make it easier for communities to implement the Fair Housing Act.