Section 3 is a provision of the Housing and Urban Development (HUD) 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.
The U.S. Department of Housing and Urban Development’s regulations implementing Section 3 are found at 24 CFR Part 135.
When Section 3 is applicable, the Housing Authority requires its contractors to demonstrate good faith efforts to comply, to the greatest extent feasible, with Section 3 and HACLA’s Section 3 Guide and Compliance Plan.
HACLA's Board of Commissioners is vested in ensuring that HACLA has a robust Section 3 plan and that economic opportunities are directed to Section 3 Businesses and Section 3 Residents to the greatest extent possible.
What is a Section 3 Business Concern?
Section 3 Business Concerns are businesses that can provide evidence that they meet one of the following criteria:
- 51 percent or more of the business is owned by Section 3 Residents; or
- At least 30 percent of its permanent full time employees include persons that are currently Section 3 Residents, or were Section 3 Residents within three years of the date of first hire; or
- A business that notes a commitment to subcontract in excess of 25 percent of the dollar award of all subcontracts to business concerns that meet one of the first two qualifications above.
Click here for more information and resources: Section 3 Business Resources
Who is a Section 3 Resident?
A Section 3 Resident is:
- A Public housing resident; or
- a low income person residing in the metropolitan area or non-metropolitan county where the Section 3 covered assistance is expended.
Click here for more information and resources: Section 3 Resident Resources
Questions about the Section 3 program can be directed the Section 3 Compliance Administrator via e-mail at firstname.lastname@example.org.