Attachment_C_-_Section_3_Explained.pdf

This document is a detailed explanation of Section 3, a provision of the Housing and Urban Development (HUD) Act of 1968 designed to foster local economic development, neighborhood improvement, and individual self-sufficiency. The provision requires recipients of certain HUD financial assistance to provide job training, employment, and contracting opportunities to low- or very-low income residents in their neighborhoods. Section 3 applies to HUD-funded Public and Indian Housing assistance for development, operating, and modernization expenditures, as well as Housing and Community Development projects involving housing rehabilitation, construction, and other public construction.

The document outlines specific economic opportunities under Section 3, which include job training, employment, and contracts across a wide range of fields such as accounting, architecture, carpentry, electrical work, engineering, and many others. Priority is given to persons in public and assisted housing, participants in HUD Youthbuild programs, homeless persons, and businesses that meet the definition of a Section 3 business concern (51% owned by Section 3 residents or employing at least 30% Section 3 residents). HUD monitors compliance, reviews annual reports, investigates complaints, and encourages recipients to have Section 3 residents make up at least 30 percent of their permanent, full-time staff. Businesses can recruit Section 3 residents through various methods, including contacting resident organizations, distributing flyers, posting signs, and placing ads in local newspapers.