Section 3

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 home ownership?

Section 3 is a starting point to home ownership. 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”. Home ownership 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.


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


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