What is Section 3?
Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 designed to promote economic self-sufficiency in local communities. It mandates that when HUD financial assistance is involved in housing and community development projects, preference should be given to businesses that provide employment and economic opportunities to low-income individuals in the project area.
How does Section 3 benefit contractors and vendors?
- ACCESS TO CONTRACTING OPPORTUNITIES – Section 3 opens doors to opportunities associated with HUD-funded projects. By participating, contractors and vendors can secure contracts for various services, including construction, maintenance, and other related projects.
If you are interested in becoming Section 3 certified email us at section3@countyhousing.org.
Preference in selection process
- Contractors and vendors who actively engage with Section 3 initiatives may receive a preference during the selection process for HUD-assisted projects. This can enhance your changes of securing contracts and contributing to local economic development.
Community impact
- Being a part of Section 3 initiatives allows contractors and vendors to make a positive impact on the local community. By providing job opportunities and fostering economic growth, businesses and contribute to the well-being of residents in the areas where projects are undertaken.
Eligibility criteria for contractors and vendors
- EMPLOYMENT OPPORTUNITIES – Demonstrate a commitment to providing job training, employment, and contracting opportunities for low-income individuals in the project area.
- BUSINESS CERTIFICATION – Ensure that your business meets the criteria for Section 3 certification. This may involve demonstrating that a significant portion of your workforce comes from the low-income community or that your business is owned by low-income residents.
- DOCUMENTATION COMPLIANCE – Maintain accurate records and documentation to prove compliance with Section 3 requirements. This includes tracking the number of new hires from the local community and other relevant information.