Section 3 of the Housing and Urban Development Act of 1968

Section 3 of the Housing and Urban Development Act of 1968, as amended by the Housing and Community Development Act of 1994, requires that, to the greatest extent feasible, employment and other economic opportunities generated by HUD funds be directed to low- and very low-income residents. 24 CFR Part 135 establishes the standards and procedures to be followed to ensure that the objectives of Section 3 are met. It is included in this Implementation Plan and Administrative Guide as Appendix A. The terms used in this Implementation Plan are as defined in 24 CFR Part 135.

24 CFR Part 135 requires that the HSHA make best efforts to ensure that 30% of new hires of the HSHA and of its contractors funded through development assistance, operating assistance or modernization assistance from HUD be residents of HSHA communities. Furthermore, it requires that best efforts be made to ensure that 10% of all construction or repair related contracts and 3% of all other contracts be awarded to Section 3 business concerns. A Section 3 business concern is defined as a business concern that is 51% owned by a Section 3 residents, or 30% of whose permanent full time employees are Section 3 residents or have been within the past three years.

In order to comply with 24 CFR Part 135, HSHA is required to establish programs and procedures that facilitate the training and employment of any client of HSHA receiving housing assistance by undertaking activities such as:

• Publicizing the availability of positions with HSHA or its contractors or subcontractors.
• Providing assistance and counseling in job placement, job interviews, and job applications.
• Maintaining current lists of available and qualified residents and making them available to contractors.
• Providing job training, either independently or in conjunction with existing institutions.
• Including negotiated provisions in all contracts specifying the number of Section 3 residents that the contractor will hire.
• Maintaining lists of Section 3 business concerns and their specialties.