Section 3
What is Section 3?
Section 3 is a provision of the Housing and Urban Development Act of 1968. Section 3 regulations ensure that employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, and consistent with Federal, State, and Local laws and regulations, be directed to low- and very low-income persons. Particularly those who are recipients of government assistance for housing, and to business concerns which provide economic opportunities to low- and very low-income persons.
Section 3 Workers
To qualify as a Section 3 Worker, you must meet one of the following standards currently or within the past five years:
- Income for previous or annualized calendar year is below the income limit established by HUD.
- Employed by a Section 3 Business Concern
- YouthBuild participant
To qualify as a Targeted Section 3 Worker, you must meet one of the following standards currently or within the past five years:
- Live within one mile of the service area or the neighborhood of the project.
- YouthBuild participant
- Currently employed by a Section 3 Business Concern
To become a registered Section 3 or Targeted Section 3 Worker:
- Complete the Worker Certification Form (PDF)
- Keep updated yearly, send changes to the Section 3 Coordinator
Section 3 Business Concern
To qualify as a Section 3 Business Concern your business must meet at least one of the following criteria, documented within the last six months:
- At least 51% owned and controlled by low- or very low-income persons.
- Over 75% of the labor hours performed for the business over the prior 3-month period are performed by Section 3 Workers.
- At least 51% owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing.
To become a registered Section 3 Business Concern:
- Complete the Business Concern Certification Form (PDF)
- Keep updated yearly, send changes to the Section 3 Coordinator
Project Applicability
For housing and community development financial assistance, Section 3 projects are housing rehabilitation, housing construction, and other public construction projects assisted under HUD programs that provide housing and community development financial assistance when the total amount of assistance to the project exceeds $200,000 of housing and community development financial assistance.
For projects funded with Lead Hazard Control and Healthy Homes funding, Section 3 applies to projects that exceed $100,000. This type of funding is not included in calculating whether the assistance exceeds the $200,000 threshold.
General Compliance
A summary of the compliance requirements are:
- To the greatest extent feasible, hire and train Section 3 Workers, and submit monthly reports of the total labor hours worked on the project to the Section 3 Coordinator. At least 25% of total labor hours must be worked by Section 3 Workers, and at least 5% of total labor hours must be worked by Targeted Section 3 Workers.
- To the greatest extent feasible, contract with Section 3 Business Concerns.
- Provide outreach/training to Section 3 Workers, and report on the outreach and training undertaken in monthly reports.
Resources
- HUD Section 3
- Section 3 Advertisement in Paper Template (PDF)
- Section 3 Resource Hub
- Section 3 Infographic (PDF)
- Section 3 Worker Certification Form (PDF)
- Section 3 Work Site Signage Template (PDF)
- Section 3 Business Certification Form (PDF)
- Dayton Section 3 Compliance Guide (PDF)
- Dayton Section 3 Policies and Procedures (PDF)
- Section 3 Monthly Reporting Form (XLSX)
- City of Dayton Section 3 Certified Businesses
- GDPM Notification Letter Template (PDF)
Section 3 Coordinator
The City of Dayton’s Section 3 Coordinator is Jordan Bereda. Subrecipients, Contractors, Subcontractors and others are encouraged to reach out via email with any questions regarding Section 3.