Section 3 is a provision of the Housing and Development Act of 1968. The purpose of Section 3 is to ensure employment and other economic opportunities generated by certain HUD financial assistance shall — to the greatest extent feasible and consistent with existing federal, state, and local laws and regulations — be directed to low- and very low-income persons, particularly those who receive government assistance for housing, and to business concerns that provide economic opportunities to low- and very low-income persons.
A Section 3 worker is any worker who currently, or when hired within the past five years, meets at least one of the three criteria:
- The worker’s income for the previous or annualized calendar year is below the income limit established by HUD
- The worker is employed by a Section 3 business concern
- The worker is a YouthBuild participant
A targeted Section 3 worker is a Section 3 worker who also meets at least one of three criteria:
- Lives in public housing or Section 8-assisted housing where the construction project is taking place
- Lives in other public housing or Section 8-assisted housing managed by VHA
- Lives within one mile of the project site
A Section 3 business concern is a business that meets at least one of the following criteria, documented within the last six-month period:
- At least 51% owned and controlled by low-income persons
- Over 75% of the labor hours performed for the business over the prior three-month period are performed by Section 3 workers; or
- A business at least 51% owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing.