What is Section 3?
Section 3 is a federally mandated program of the U.S. Department of Housing and Urban Development (HUD).
Under Section 3 of the HUD Act of 1968, federal funding invested in housing and community development shall provide contracts, employment, training, and other economic opportunities to low- and very low-income people in the local jurisdiction and to businesses that provide such opportunities, as known as “Business Concerns.”
Section 3 requires that “to the greatest extent feasible,” businesses working on projects that receive certain financial assistance from HUD should make a good faith effort to train and hire low- and very low-income individuals, especially those who receive government assistance for housing, and contract with businesses that do so.
Employment opportunities covered by Section 3 may include professional, technical, construction, and administrative.
Among the service contracts covered by Section 3 are construction, professional services and general services such as janitorial.