Understanding Section 3: Creating Economic Opportunities Through HUD-Funded Projects
- pbarcelona8
- 2 days ago
- 1 min read
What Is Section 3?
Section 3 is a provision of the Housing and Urban Development (HUD) Act that ensures economic opportunities—such as jobs, training, and contracts—generated by HUD-funded projects are directed toward low-income individuals and the businesses that employ them.
Who Benefits?
Section 3 Workers: These include low-income individuals, public housing residents, and YouthBuild participants.
Section 3 Businesses: Companies that are majority-owned by low-income individuals, employ Section 3 workers, or provide economic opportunities to them.
When Does Section 3 Apply?
Section 3 requirements apply to:
Projects receiving $200,000 or more in HUD housing or community development assistance.
Any amount of public housing financial assistance, including operating or capital funds.
Who Is Responsible?
Recipients of HUD funding (such as public housing authorities and local governments)
Prime contractors and subcontractors working on HUD-funded projects
Each party is responsible for making good faith efforts to hire Section 3 workers and contract with Section 3 businesses. Compliance must be tracked and documented at every level of the project.
Why It Matters
Section 3 isn’t just about meeting federal requirements—it’s about creating real, lasting change in underserved communities. By prioritizing local hiring and contracting, we can help build stronger neighborhoods and more resilient local economies.
Learn more about our expertise: Section 3 Compliance | ARTOVIA