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Section 3

What is Section 3?

Section 3 of the Housing and Urban Development Act of 1968, as amended requires that all programs receiving direct financial assistance administered by HUD provide, to the greatest extent feasible, opportunities for jobs, training and economic opportunities to low and very low income residents and contracting opportunities to businesses owned by or employing low and very low income residents. This requires that Public Housing Authorities must make a good faith effort in hiring or training Section 3 residents or section businesses.

Who is a Section 3 resident?

A Section 3 resident must fall under one of the two categories:

  • A public housing resident.
  • A low or very-low income person.

What is a Section 3 business concern?

Section 3 business concerns are businesses that can provide evidence that they meet one of the following:

  • 51 percent or more owned by Section 3 residents; or
  • At least 30 percent of its full time employees include persons that are currently Section 3 residents, or within three years of the date of first employment with the business concern were Section 3 residents; or
  • Provides evidence, as required, of a commitment to subcontract in excess of 25 percent of the dollar award of all subcontracts to be awarded to business concerns that meet the qualifications in the above two paragraphs.

How is “low-income” determined?

The term “low-income” is used in the Section 3 regulation to include both low- and very low-income individuals. Local income levels can be obtained online at:

Have more questions?

Want to become a certified section 3 resident or business?

Becoming certified can help you learn about employment opportunities or contracting projects in the metro area. If you think you fulfill the Section 3 resident or business requirements please contact Bryan Hartman using the contact information below.