Employment/Economic Opportunities for Lower Income Persons and Businesses (Section 3)

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Summary:
Section 3 of the HUD Act of 1968 requires, to the greatest extent feasible, that recipients of HUD funds (and their contractors and subcontractors) provide jobs and other economic opportunities to low-income persons, particularly public housing residents. Section 3 helps create employment for low-income persons and provides contracting opportunities for businesses that are owned by low-income people or that provide employment to low-income people.

Purpose:
The U.S. Department of Housing and Urban Development's (HUD) programs award billions of dollars each year for projects that generate thousands of job and contracting opportunities. Section 3 of the HUD Act of 1968 requires that recipients of HUD funds (and their contractors and subcontractors) provide jobs and other economic opportunities to low-income persons. Through recruiting in public housing neighborhoods, such fund recipients can make residents and businesses aware of the opportunities available.

Type of Assistance:
Section 3 does not authorize funds; instead, it governs the use of funds appropriated for other HUD programs and provides job and contracting opportunities.

Eligible Grantees:
Section 3 automatically applies to grantees of HUD public housing and community development programs. States, local governments, public housing authorities, nonprofit organizations, and their contractors and subcontractors who receive funds under the programs must follow Section 3.

Eligible Customers:
For training and employment, four categories of low-income persons (called Section 3 residents) receive priority: (1) residents of the public and assisted housing, (2) those living near a HUD-assisted project, (3) participants in Youthbuild programs, and (4) homeless persons. For contracting, businesses owned by Section 3 residents, businesses that employ Section 3 residents full time, and subcontractors using such businesses receive priority.

Eligible Activities:
With respect to HUD's public housing programs, Section 3 applies to funds spent for specific types of development, operations, and modernization. For HUD's other housing and community development programs, Section 3 applies to: (1) housing rehabilitation (including lead-based paint hazard reduction), (2) housing construction, and (3) other public construction projects. Employment opportunities available under Section 3 include accounting, purchasing, word processing, appliance repair, carpet installation, landscaping, manufacturing, carpentry, and catering.

Application:
Not applicable. All applicants under HUD housing and community development programs must certify that they will follow Section 3 requirement.

Technical Guidance:
Section 3 requirements are authorized under the Housing and Urban Development Act of 1968, Section 3, 12 U.S.C. 170lu. The program is administered by the Office of Fair Housing and Equal Opportunity.

Complaints should be sent to any HUD Field Office Fair Housing Enforcement Center, Program Operations and Compliance Center, or the Office of Fair Housing and Equal Opportunity. Grievances must be received within 180 days of the alleged violation of Section 3. Complaints are typically approved or dismissed within 6 months.

For More Information:
The HUD's Direct Distribution System supplies national and local information and links to fair housing resources inside and outside the government. The telephone number is 1-800-767-7468.

HUD's Fair Housing home page provides information about the programs of the Office of Fair Housing and Equal Opportunity.