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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 Opportunity Portal

Policy Guidance and CPD Notices

Regulation for Section 3: 24 CFR Part 75

PDF CFR | Electronic CFR

Benchmark Notice for Section 3

Notice CPD-21-07 (HOME and HTF)

Notice CPD-21-09 (OBGA)

Notice PIH 2022-10

Related Programs

CDBG

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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

 

Learn More

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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.

 

View Guidebook

 

View Guidebook Tools

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Section 3 Training

Section 3 Training

View and complete Section 3 training sessions to become knowledgeable in Section 3 and how to implement regulations.

 

Understanding Section 3

 

Final Rule Training
& Office Hours

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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.

 

View Video