What is Section 3?
Section 3 is a federally mandated program of the U.S. Department of Housing and Urban Development (HUD). Under Section 3 of the HUD Act of 1968, federal funding invested in housing and community development shall provide contracts, employment, training, and other economic opportunities to low- and very low-income people in the local jurisdiction and to businesses that provide such opportunities, also known as "Business Concerns."
Section 3 requires that "to the greatest extent feasible," businesses working on projects that receive certain financial assistance from HUD must make a good faith effort to train and hire low- and very low-income individuals and contract with businesses that do so. The program is implemented and regulated by Part 135 of Title 24 of the Code of Federal Regulations (24 CFR 135).
Sub-recipients, developers, contractors, and subcontractors on LHA Section 3 covered contracts and projects must, to the greatest extent feasible, make a documented effort to achieve the HUD Section 3 numerical goals by awarding contracts to qualified Section 3 Business Concerns and employing qualified Section 3 Residents, if they need to award contracts and/or hire new employees occurs:
For assistance in identifying certified Section 3 Residents and Section 3 Business Concerns, contact our office at 704.735.2221.