What is Section 3?

Section 3 of the HUD Act of 1968, requires to the greatest extent feasbile, that recipents of HUD funds (and their contractors and subcontractors) provide jobs and other economic opportunities to low-income persons, particularly public housing residents.  Section 3 helps create employment for low-income persons and provides contracting opportunities for businesses that are owned by low-income people or that provide employment to low-income people.

How does Section 3 work?
Section 3 does not authorize funds. It governs the use of funds appropriated for other HUD programs and provides job and contracting opportunities. Eligible activities include housing rehabilitation, housing construction, and other public construction projects. Types of employment under Section 3, for the Authority’s modernization work or the HOPE VI Revitalization Project may include installation of appliances and new carpet, carpentry, landscaping, masonry, welding and other trades.

As the contractors on THA’s properties, including the HOPE VI project, need employees, they will contact Construction Services staff to obtain names of eligible parties who are looking for work in the construction trade as a journeyman or laborer. Wages to be paid are posted at the construction office and are subject to Davis-Bacon (federal wage rates).

Am I eligible?
For training and employment, THA’s categories of low-income persons (Section 3 residents) receive priority:

  • Residents of public housing and assisted housing (Section 8)
  • Those living near a HUD-assisted project
  • Participants in Youthbuild programs; and
  • Homeless persons

For contracting, businesses owned by a Section 3 resident, businesses who employ Section 3 residents full time, and subcontractors using such businesses receive priority. Low-income persons or families with income falling below the pre-determined ranges are eligible to be classified as a Section 3 resident. Contact Construction Services or HOPE VI Supportive Services for income guidelines.

How can I apply?
Contact Construction Services, Hope VI Supportive Services or your Public Housing Manager to complete a Section 3 Eligibility Certification Form. Indicate on the form any construction experience you have or are interested in learning on the job. Sign your form and return it to the Resource Center or Supportive Services staff.

Staff will determine your eligibility. Some contractors may require an additional application form. When contractors need workers, they are encouraged to hire from Section 3 first.