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.
Who are Section 3 residents?
Section 3 residents are Public housing residents or who live within the boundaries of the city of Richmond and who have a household
income that falls below HUD's Income limits.
Apply for Section 3 Worker Certification
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 Section 3 business must meet the following criteria.
- Is owned 51% or more by Section 3 residents
- Employs Section 3 residents for at least 30 percent of its full-time, permanent staff
- Provides evidence of a commitment to subcontract to Section 3 business concerns, 25% or more of the dollar amount of the awarded contract
Apply for Section 3 Business Certification
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
Who will award the economic opportunities?
Recipients of HUD financial assistance will award the economic opportunities. They and their contractors and subcontractors are
required to provide, to the greatest extent feasible, economic opportunities consistent with existing federal, state, and local laws
and regulations.
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