TRAINING.  EMPLOYMENT.  CONTRACTING.  OPPORTUNITY.

SECTION 3 BUSINESS, DEFINED.

A Section 3 Business concern is a business concern under HUD Regulations that meets the following requirements:

  • 51 percent or more owned by Section 3 residents; or
  • Whose permanent, full-time employees include persons, at least 30 percent of whom are currently Section 3 residents, or within three years of the date of first employment with the business concern were Section 3 residents; or
  • A business that provides evidence of a commitment to subcontract in excess of 25 percent of the dollar award of all subcontracts to be awarded to business concerns that meet the qualifications set forth in paragraphs (1) or (2) in this definition of “Section 3 business concern”.

The Section 3 program requires that recipients of certain HUD financial assistance, to the greatest extent possible, provide job training, employment, and contract opportunities for low or very-low income residents in connection with projects and activities in their neighborhoods.  Section 3 requirements are outlined in HUD’s 24 CFR 135.

SECTION 3 

A Section 3 resident is:

  • A public housing resident OR
  • A low or very low-income person, residing in the metropolitan area.


Low income or Very low-income persons are defined as families whose incomes do not respectively exceed 80%, 50%, or 30% of the median income (varies by household size) for the area. 


Definitions of low, very low, and extremely low income families can be found here

SECTION 3 FORMS

getting a leg

up

WHAT IS A SECTION 3 RESIDENT?