What is Section 3?
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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.
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Who are Section 3 residents?
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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 HUE's area median family income limits.
Determining Income Levels
- Low income is defined as 0% or below the area median family income for Galveston
- Very low income is defined as 50% or below the area median family income for Galveston.
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What is a Section 3 business concern?
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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.
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What programs are covered?
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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 Brochure
Section 3 Brochure (Spanish)
Section 3 Definitions |
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