Section 3 FAQ
Q

Does an individual working for a Section 3 business concern have to be a low- or very low-income person to be counted as a Section 3 worker? Does a public housing resident have to be a low- or very low-income person to be counted as Section 3 worker?

Date Published: November 2021

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A

A Section 3 worker is any worker who currently fits, or when hired within the past five years fit, at least one of the following categories, as documented:

  • Is a low or very low-income person,
  • Is employed by a Section 3 business concern, or
  • Is a YouthBuild participant.

A Section 3 worker, including a public housing resident, does not have to be a low- or very low-income person to be counted as a Section 3 worker; they may qualify as a worker under the Section 3 business concern definition or as YouthBuild participant regardless of their income status. If a business qualifies as a Section 3 business concern, the labor hours for all the employees under that business can be counted as Section 3 labor hours and Targeted Section 3 labor hours.

For certification purposes, the recipient is required to maintain one of the following (unless certifying as an employee of a Section 3 business concern or a YouthBuild participant):

  1. A worker’s self-certification that their income is below the income limit from the prior calendar year;
  2. A worker’s self-certification of participation in a means-tested program such as public housing or Section 8-assisted housing;
  3. Certification from a Public Housing Authority (PHA), or the owner or property manager of project-based Section 8-assisted housing, or the administrator of tenant-based Section 8-assisted housing that the worker is a participant in one of their programs; or
  4. An employer’s certification that the worker’s income from that employer is below the income limit when based on an employer’s calculation of what the worker’s wage rate would translate to if annualized on a full-time basis.

Therefore, if a recipient is identifying an individual’s income status by demonstrating that they are a PHA resident, then no further certification is required on their income status. HUD acknowledges that there is an anticipated margin of error that may arise where a public housing resident may not fit within the low- or very low-income categories.


Tags: General

FAQ ID:

3857