Section 3

Section 3 is the starting point for all things self-sufficiency for residents of Public and Indian Housing Communities.  If poverty has remained stagnant in this industry, it is directly associated with the industry's lack of enforcement, oversight, and compliance efforts. 

What is Section 3?

Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 that helps foster local economic development, neighborhood economic improvement, and individual self-sufficiency. The Section 3 program requires that recipients of certain HUD financial assistance, to the greatest extent feasible, provide job training, employment, and contracting opportunities for low- or very-low income residents in connection with projects and activities in their neighborhoods.  

Section 3 requirements apply to approximately 5,000 recipients of HUD funding (such as Public Housing Authorities, State and local government agencies, low-income housing providers, etc.) and their subrecipients and contractors. Up to 40% of HUD's annual budget is subject to Section 3 requirements.

How Does Section 3 Promote Self-Sufficiency?

Section 3 is a starting point to obtain job training, employment, and contracting opportunities. From this integral foundation, coupled with other resources, comes the opportunity for economic advancement and self-sufficiency.

What DoesThis Really Mean?

Agencies who receive certain HUD Financial assitance are obligated to ensure that those funds are used to assist low income families with training, employment, and contracting opportunties first.   With all the major redevelopment efforts being taken on by Public Housing Authorities across the nation, pipelines for employment, contracting and training opportunties should be bursting at the seams. Residents should be prepared to seize opportunites when they arise.

Why Is This an Issue?

Poverty is big business for some and pure misery for those trapped within its tentacles.  There's a famous quote by Charles Darwin which states "If the misery of the poor be caused not by the laws of nature, but by our institutions, great is our sin."  If we can send a man to the moon, certainly we can move people from poverty to prosperity.  This is NOT Rocket Science, Ladies and Gentlemen!  It's called LOVE! 

Since 1994, the Section 3 program has been governed by an interim regulation. For the first time in 20 years, HUD has proposed a new rule that would expand opportunities for public housing residents and low-income workers and increase contracting opportunities for local businesses.  BUT it has been sitting dormat for the last 2+ years with no final approval.  

What Can You Do About It?!

Sign our petition and tell HUD officials to approve the New Proposed Rule and bring opportunity home to low-income residents.  The proposed rule is estimated to direct an additional 1,400 jobs to Section 3 residents, and an additional $172+ million in HUD funded contracts awarded to Section 3 businesses each year.

 

Quick Facts

By ensuring that HUD-funded employment opportunities are meaningful, the new proposed rule could result in more than $16 million in Weekly wages for section 3 residents. 

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A 2013 OIG report speaks to HUD's failure to Enforce the Reporting Requirements of Section 3 of the Housing and Urban Development Act of 1968 for Public Housing Authorities. 

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There is a complaint process. Section 3 residents and business concerns may file complaints if they think a violation of Section 3 requirements has occurred where a HUD-funded project is planned or underway. Complaints will be investigated; if appropriate, voluntary resolutions will be sought. There are appeal rights to the Secretary. Section 3 residents and businesses may also seek judicial relief. 

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Section 3 is a starting point to homeownership. Once a Section 3 resident has obtained employment or contracting opportunities they have begun the first step to self-sufficiency. 

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Economic Opportunites for Low Income persons (CFR 135) General Statute.  

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