Galveston Housing Authority

Development

Section 3 Program

Additional Pages:
	GHA Reconstruction Plan
	Section 3

What is Section 3?

Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 that helps foster local economic development, neighborhood economic improvement, and individual self-sufficiency. The Section 3 program requires that recipients of certain HUD financial assistance, to the greatest extent feasible, provide job training, employment, and contracting opportunities for low or very low income residents in connection with projects and activities in their neighborhoods. Section 3 is a starting point for people with low or very low incomes to obtain job training, employment, and contracting opportunities.

GHA"s Section 3 Policy

Who are Section 3 residents?

Section 3 residents are:

Galveston Housing Authority public housing residents or...
Persons who live in the City of Galveston and who have a household income that falls below HUD's area median family income limits.

Determining Income Levels:

Extremely low-income is a household whose income does not exceed 30% of the median area income for Galveston.
Very low-income is a household whose income does not exceed 50% but is above 30% of the median area income for Galveston.

What is a Section 3 business concern?

A business that:

Is 51% or more owned by Section 3 residents.
Employs Section 3 residents for at least 30% of its full-time permanent staff or...
Provides evidence of a commitment to subcontract to Section 3 business concerns, 25% or more of the dollar amount of the awarded contract.

What programs are covered?

Section 3 applies to HUD-funded Public and Indian Housing assistance for development, operating, and modernization expenditures.

Section 3 also applies to certain HUD-funded Housing and Community Development projects that complete housing rehabilitation, housing construction, and other public construction.

The following documents can help you understand Section 3:

Section 3 and the Galveston Community

Section 3 Brochure

Section 3 Brochure (Spanish)

Section 3 Definitions