Division of Housing and Community Development
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Section 3 Economic Opportunities
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.
See also Downloads Minority Business Enterprise and Section 3
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 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 subcontract to Section 3 business concerns, 25 percent 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.
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