HUD Section 3
Eligibility
Qualifications for Section 3 businesses are based on the percent of:
- The business owned by Section 3 residents.
- Labor hours performed for the business by Section 3 workers over the last three months.
Qualifications for Section 3 resident workers are based on:
- Family size and income
- Where they live
- Public assistance
HUD Section 3 workers
Resident workers
Qualified residents may apply to work on Section 3 projects.
Section 3 Workers should:
- Perform 25% of all labor hours.
- Of that 25%, Targeted Section 3 Workers should perform 5% of all labor hours.
- The 5% goal will count towards the 25% Section 3 Worker goal.
Section 3 workers
To be a "Section 3 worker,” a person must be one of the following:
- Employed by a Section 3 business concern.
- Be a YouthBuild participant within the past five years.
- Have a gross income below the income limit established each year by HUD.
HUD income limits
HUD establishes low-income limits, and very low-income limits. HUD says that a worker is:
- Low income if they earn 80 percent of the median individual income in the area.
- Very low-income if they earn 50 percent of the median individual income in the area.
Targeted Section 3 workers
To be a "Section 3 worker,” a person must be one of the following:
- Employed by a Section 3 business concern.
- Be a YouthBuild participant within the past five years.
- Live in the area of the project with the past five years
- Live in public housing or Section 8-assisted housing within the past five years.
HUD Section 3 businesses
Business
There are no Section 3 business inclusion requirements or goals. If you get Section 3 money, we encourage you to contract with Section 3 businesses for your project work.
HUD calls Section 3 businesses a "Section 3 business concern." To be a Section 3 business concern, a business must be one of the following documented within the last 6 months:
- It is at least 51% owned and controlled by low- or very low-income persons.
- Section 3 workers performed over 75% of the labor hours for the business (over the last three months).
- It is at least 51% owned and controlled by residents who now live in public housing or Section 8-assisted housing.
Contact us
Johnnie Burns
Associate Director
Contract Compliance Division
Phone
Address
City Hall350 Fifth St. S.
Room 239
Minneapolis, MN 55415
Office hours
8:30 a.m. – 4:30 p.m.
Monday – Friday