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 public housing 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 public 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