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 recipients of certain HUD financial assistance, to the greatest extent feasible, provide job training, employment, and contracting opportunities for low- or very-low income residents in connection with projects and activities in their neighborhoods.
Section 3 Policy
Congress established the Section 3 policy to guarantee that the employment and other economic opportunities created by Federal financial assistance for housing and community development programs should, if possible, be directed toward low- and very-low income persons, particularly those who are recipients of government assistance for housing.
Who are Section 3 residents?
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 Housing Authority of the City of Tulsa’s (THA) modernization work or the Rental Assistance Demonstration Conversions (RAD) and Choice Neighborhood Initiative grants may include installation of appliances and new carpet, carpentry, landscaping, masonry, welding and other trades.
As contractors on THA’s properties, including the RAD conversions and Choice Neighborhoods Initiative projects 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).
How does Section 3 apply to RAD Conversions?
The requirements of Section 3 apply to HUD funding that is used for or in connection with new construction, rehabilitation or infrastructure projects or activities. While the RAD program itself does not provide funding for housing construction or rehabilitation, the RAD Notice (PIH 2012-32 Rev 2) applies Section 3 to all initial repairs or new construction identified in the Financing Plan. Accordingly, for the purposes of the regulation all work included in the RAD Conversion Commitment is considered “Section 3 covered projects” and the Project Owner is considered the “Recipient.” Project owners must take proactive steps to hire local low-income persons and to award contracts to businesses that are owned by or substantially employ those persons. Additionally, the requirements of Section 3 may apply after conversion when HUD funding is used in connection with construction or rehabilitation activities.
What is a Section 3 business & what types of economic opportunities are available under Section 3?
A business:
Types of opportunities:
Examples include:
|
Administrative/ |
Services |
Construction |
| Accounting Payroll Research Bookkeeping Purchasing Word Processing |
Appliance Repair Florists Marketing Carpet Installation Janitorial Photography Catering Landscaping Printing Computer/Information Manufacturing Transportation |
Architecture Bricklaying Carpentry Cement/Masonry Demolition Drywall Electrical Elevator Construction Engineering Fencing Heating Iron Works Machine Operation Painting Plastering Plumbing Surveying Tile Setting |
https://www.hud.gov/sites/dfiles/documents/19580_SECTION3.PDF
https://www.hud.gov/sites/documents/SEC3BIZFAQ.PDF
https://www.tulsahousing.org/contracting/rfps/
Use this form to self-certify your Section 3 business and register it so that it may be found within the HUD Section 3 Business Registry:
https://portalapps.hud.gov/Sec3BusReg/BRegistry/RegisterBusiness
https://www.hud.gov/sites/documents/92010.PDF
Under guidelines established by the U. S. Department of Housing and Urban Development for implementation of Executive Order 12432, the Housing Authority of the City of Tulsa (THA) promotes the participation of Minority and Women-Owned Business Enterprises (M/WBEs) in contracts involving its housing programs.
The term “Minority and Women-Owned Business Enterprises” means businesses at least fifty-one percent (51%) of which are both and controlled in management and daily operations by minorities or women. The term “Minorities” includes African-Americans, Hispanics, Asian or Pacific Islanders, American Indians and Alaska Natives.
The Housing Authority of the City of Tulsa notifies all bidders that in regard to any contract entered in, Minority and Women-Owned Business Enterprises (M/WBEs) will be afforded equal opportunity to submit bids and will not be discriminated against on the grounds of race, color sex, or national origin in consideration for an award.
Information obtained will be retained by THA as permanent records of the prime contractor’s “Good Faith Effort.”
