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Section 3

The Section 3 requirements help promote training, employment, contracting, and other economic opportunities to low- and very low-income persons.

Overview

Each year, HUD invests billions of federal dollars into distressed communities across the country for projects. Projects include:

  • Building and rehabilitating housing
  • Improving a variety of infrastructures
  • Building community centers
  • Helping families achieve stability and advancement

The Section 3 program requires recipients of HUD funding to direct employment, training, and contracting opportunities to low-income individuals and the businesses that employ these persons within their community. Section 3 is a provision of the HUD Act of 1968 and is found at 12 U.S.C. 1701u. The regulations are found at 24 CFR Part 75.

Per this statutory language, recipients of HUD funds (i.e. grantees and contractors) ensure that “to the greatest extent feasible,” when certain HUD funds are used to assist housing and community development projects, preference for construction-related training, jobs, and contracting opportunities go to low- and very-low income people and to businesses that are owned by low- and very-low income persons or businesses that hire them. These opportunities are both gender and race neutral.

Program Support for Section 3

Section 3 Regional Points of Contact
Section 3 Business Registry
Section 3 Opportunity Portal

Policy Guidance

Regulation for Section 3: 24 CFR Part 75

PDF CFR | Electronic CFR

Benchmark Notice for Section 3

Featured Resources and Training

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Section 3 FAQs

Section 3 FAQs

Find answers to frequently asked questions about Section 3 divided into topics such as:

  • Applicability
  • Certification
  • Complaints
  • Consistency with Other Laws
  • Economic Opportunities Numerical Benchmarks
  • Recipient Responsibilities

 

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Section 3 Guidebook

Section 3 Guidebook

The Section 3 Guidebook is a resource intended to help HUD grant recipients, sub-recipients, contractors, and Section 3 businesses who manage or implement the Section 3 provisions.

 

Coming Soon

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Understanding Section 3 Training

Understanding Section 3 Training

This online training introduces the purpose, applicability, and goals of the Section 3 program. It is designed for HUD financial assistance recipients, contractors, subcontractors, organizations and businesses providing economic opportunities for low- and very low-income persons.

 

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Small Contractors Initiative Training

Small Contractors Initiative Training

This training curriculum is designed to provide the tools necessary for construction contractors to obtain surety bonds and working capital to better compete for federal contracting opportunities and work.

 

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