Resident & Business Certification

Section 3

Employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3, shall to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing. These goals are illustrated in Chapter 24 of the Code of Federal Regulations, Part 135.50.  The City attempts to reach these goals annually by asking contract awardees to hire employees or by soliciting businesses during the contract process.


For all contracts over $100,000 (including subcontracts):

30% of new hires must be Section 3 Residents.

Note: This means that 30% of all new hires made by the City, when using federal HUD money, need to be eligible Section 3 residents or employees of a Section 3 Business (see eligibility below).

10% of construction contracts must be awarded to Section 3 Businesses.

3% of non-construction contracts must be awarded to Section 3 Businesses.


All Section 3 Businesses and Residents must be certified as such:

To Qualify as a Section 3 Business

1. 51% of your business needs to be owned by Section 3 resident(s).


2. 30% of permanent, full-time employees at your business are certified Section 3 residents.

To Qualify as a Section 3 Resident

1. An individual must earn 30% to 80% of the average family income.


2. An individual must live in public housing.