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What Qualifies as a Section 3 Business Concern for HUD-Funded Projects?

Updated: Jul 27

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Section 3 of the Housing and Urban Development Act of 1968 ensures that employment, training, and contracting opportunities generated by HUD-funded projects are directed—to the greatest extent feasible—to low- and very low-income individuals and the businesses that employ them.


🧩 What Qualifies as a Section 3 Business Concern?

A Section 3 business concern is a business that currently meets — or has met within the past six months — at least one of the following HUD-defined criteria:

  • Is at least 51% owned and controlled by low- or very low-income persons

  • Has over 75% of its labor hours performed by Section 3 workers over the prior three-month period

  • Is at least 51% owned and controlled by current public housing residents or Section 8-assisted housing residents


These criteria apply to both:

  • 🏢 Projects receiving Public Housing Financial Assistance

  • 🏘️ Projects funded by Housing and Community Development Assistance (e.g., CDBG, HOME, ESG, HOPWA, LHCHH)


If you have questions about Section 3, please contact our compliance team:


You can also reach either of them by phone at 985-900-2320.


You can learn about Section 3 targeted workers, Section 3 workers, and Section 3 thresholds in our previous posts:


You can also learn more about ARTOVIA’s Section 3 services and expertise at our

 
 
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