Section 3 is a provision of the Housing and Urban Development 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 Housing and Urban Development 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.

Section 3 Promotes 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

Section 3 Promotes Homeownership

  • It is a starting point to homeownership because once a Section 3 resident has obtained employment or contracting opportunities they have begun the first step to self-sufficiency.

Section 3 Residents

  • Public housing residents, or
  • Persons who live in the area where a Housing and Urban Development assisted project is located and who have a household income that falls below Housing and Urban Development's income limits

Determination of 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.

Section 3 Business Concern

A business that:

  • Is 51% or more owned by Section 3 residents;
  • Employs Section 3 residents for at least 30% of its full-time, permanent staff; or
  • Provides evidence of a commitment to subcontract to Section 3 business concerns, 25% or more of the dollar amount of the awarded contract.

Covered Programs

  • Section 3 applies to Housing and Urban Development funded Public and Indian Housing assistance for development, operating and modernization expenditures.
  • Section 3 also applies to certain Housing and Urban Development funded Housing and Community Development projects that complete housing rehabilitation, housing construction and other public construction.

Section 3 and Minority and Women Business Enterprise - Training Videos and Materials

The department provides training materials and instructional videos related to Section 3 and Minority and Women Business Enterprises: Section 3 and Minority and Women Business Enterprise - Training Videos and Materials

Types of Economic Opportunities Available Under Section 3

  • Job training
  • Employment
  • Contracts

Employment Opportunities

Any employment resulting from these expenditures, including administration, management, clerical support and construction, is subject to compliance with Section 3. Examples of employment 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
An equal opportunity employer/program.  Auxiliary aids and services are available upon request to individuals with disabilities.
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