On this page, partners can find resources related to the monitoring and compliance of the City's affordable properties.
What is Section 3?
Established in 1968, the purpose of Section 3 is to provide jobs, training, and contracting opportunities for low and very low-income persons and the businesses that employ them through U.S Department of Housing & Urban Development (HUD) grants and funding programs.
Section 3 recipients agree to identify, hire, and train low-income populations to assist in the goal of developing pathways to career ladders for low or very low-income populations.
Section 3 recipients shall provide employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, and consistent with existing Federal, State and local laws and regulations, be directed to low and very low-income persons, particularly those who are recipients of government assistance for housing, and to business concerns which provide economic opportunities to low- and very low-income persons.
By putting forth your best efforts to identify and employ low-income workers you are making a positive economic impact to the community.
When does Section 3 requirements apply to a project?
Section 3 projects are housing rehabilitation, housing construction, and other public construction projects assisted under the HUD programs that provide housing and community development financial assistance when the total amount of assistance to the project exceeds a threshold of $200,000. The project is considered the site or sites together with any building(s) and improvement located at the site(s) that are under common ownership, management, and financing.
Section 3 Benchmarks
A Section 3 project must meet the following benchmark goals (effective Nov. 30, 2020):
- 25% of Total Labor Hours should be from section 3 workers
- 5% of Total Labor Hours should be from targeted section 3 workers
(Total of 25%; the 5% targeted section 3 hours are part of the overall 25%)
Forms, Training, & Other Resources
Forms:
- Employee section 3 or targeted section 3 self-certification form(PDF, 698KB)
- Employer certification form – Employer certifies an employee as being section 3(PDF, 122KB)
- Business concern self-certification form(PDF, 77KB)
- Project Labor-Workforce Summary Spreadsheet(XLSX, 163KB)
- Implementation Plan(PDF, 403KB)
Training & Resources:
- Power point presentation(PPTX, 16MB)
- Contracting Policy(PDF, 462KB)
- Contract verbatim language-to be added to all contractor and subcontractor contracts(PDF, 162KB)
- Section 3 FAQ’s(PDF, 331KB)
- Qualitative Efforts (PDF, 57KB)
Mandatory Affordable Housing Compliance Training
This training covers eligibility requirements, income verification process, and required documentation for HOST's Mandatory Affordable Housing program.
Compliance for Build Alternative Plans
This training covers eligibility requirements, income verification process, and required documentation for HOST's Build Alternative Plan housing program.