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 BHA, 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.
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 80% or below the area median income.
What is a Section 3 business?
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 employ or subcontract 25% of the awarded contract to Section 3 residents or businesses.
Why Is Section 3 Important?
You are likely to increase your business opportunities by becoming a Section 3 certified business.