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Section 3

What is Section 3?

Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 that helps foster local economic development, neighborhood economic improvement, and individual self-sufficiency. The Section 3 program requires that Lucas Metropolitan Housing Authority and other recipients of HUD financial assistance (including contractors and subcontractors), to the greatest extent feasible, provide job training, employment and contracting opportunities for Affordable Housing (commonly known as Low Income Public Housing or LIPH) residents, low and very-low income residents and businesses in connection with projects and activities in their neighborhood.

Who receives Economic Opportunities under Section 3?

For Training and Employment

  • Persons in affordable housing and assisted housing
  • Persons in the affected project neighborhood
  • Participants in HUD Youth build Programs
  • Low and very-low income persons who live in the metropolitan statistical area or non-metropolitan county in which the Section 3 covered assistance is expended

For Contracting

A Business Concern:

  • That is at least 51 percent or more owned by Section 3 resident(s)
  • In which at least 30% of their permanent full-time employees are Section 3 residents or within three years of the date of first employment with the business concern were Section 3 residents
  • That provides evidence of a commitment to subcontract in excess of 25 percent of the total dollar award of all subcontracts to Section 3 businesses

Section 3 Numerical Goals

  1. Employment - At least 30% of the aggregate number of new hires for a covered contract or project will be Section 3 residents.
  2. Contracting - Award at least 10% of the total dollar amount of all Section 3 covered contracts for building trades work related to the project and at least 3 % of the total dollar amount of all other Section 3 covered contracts to Section 3 businesses.

Section 3 Participant Resume Bank structure:

Contractor/Employer - Profile registration

  • Mandatory for all LMHA contractors
  • Profile includes - Type of business & contact person
  • Create password
  • Post job opportunities with description and qualifications
  • View and forward participants resumes
  • Notification sent to Section 3 Compliance Coordinator when job posting has been created, interviews, and hiring
  • Removal of old job opportunities

Section 3 Participant - Profile registration

  • Contact information, skills, certifications, education, email address, etc.
  • Create password
  • Ability to complete Section 3 Resident Certification Form
  • Ability to upload resume
  • Ability to view available job postings by contractors

Section 3 Compliance Coordinator

  • Create password
  • Access to contractor profile - excluding password
  • Access to resident profile - excluding password
  • Ability to forward candidates resumes to contractors
  • Notification of job postings, scheduling of interviews, and hiring from contractor
  • List of job opportunities on web page
  • Ability to run reports

Income Limits
Current income limits for the Section 3 Program are $44,100 for a family of two, $55,100 for a family of four, or $63,950 for a family of six. For more information on income limits.

HUD Section 3 Business Registry
Section 3 businesses can register with HUD on a national level. HUD provides a searchable list of these Section 3 businesses.

Section 3 Business Registry Search Results
Section 3 Policy
Section 3 Brochure - English
Section 3 Brochure - Spanish
Section 3 FAQs
Section 3 Business Preference Form
Section 3 Business Preference Explanation and Section 3 Clause Form
Section 3 Business Preference Not Feasible and Non-Trigger Status Form
Section 3 Resident Self-Certification and Skills Data Form

Davis-Bacon Resources:
Making Davis-Bacon Work Contractors Guide Prevailing Wage Requirements
Davis-Bacon and Related Acts (DBRA) FAQs