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 Opportunity Portal
Policy Guidance and CPD Notices
Regulation for Section 3: 24 CFR Part 75
Benchmark Notice for Section 3
Notice CPD-21-07 (HOME and HTF)
Notice CPD-21-09 (OBGA)
Notice PIH 2022-38/FPM-19-2022
Related Programs
Featured Resources and Training
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
Section 3 Guidebook and Tools
Section 3 Guidebook and Tools
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. Additionally, review the Section 3 Guidebook Tools for resources and sample tools.
Section 3 Training
Section 3 Training
View and complete Section 3 training sessions to become knowledgeable in Section 3 and how to implement regulations.
HUD's Opportunity Portal
HUD's Opportunity Portal
This video tutorial provides a walkthrough of the Opportunity Portal which helps match workers to jobs and training opportunities and Section 3 businesses to contracting opportunities.
Spotlight
Materials Posted: 2021 Section 3 Final Rule Training Series - Office Hours Do you have unanswered questions on HUD’s Section 3 Final Rule? Still not sure how to implement the requirements of the Section 3 Rule compliantly into your programs? Office Hours are now available to help support HUD housing and community development (HCD) and public housing authority (PHA) financial assistance recipients.
How to Report HOME and HTF Projects for Section 3 in IDIS This video tutorial demonstrates how to report Section 3 accomplishments for HOME Investment Partnerships Program (HOME) and Housing Trust Fund (HTF) projects in the Integrated Disbursement and Information System (IDIS).
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.
News and Announcements
Materials Posted: 2022 Section 3 Final Rule – Office Hours
Date Posted: February 09, 2023
Date Posted: January 04, 2023
Materials Posted: 2022 PHA Section 3 Final Rule Training Series
Date Posted: December 02, 2022