Section 3 is a federally mandated program of the U.S. Department of Housing and Urban Development (HUD).
Under Section 3 of the HUD Act of 1968, federal funds invested in housing and community development shall provide contracts, employment, training, and other economic opportunities to low- and very low-income persons in the local jurisdiction, referred to as “Section 3 Workers;” and to businesses that employ such persons, referred to as “Section 3 Business Concerns.”
Section 3 requires that “to the greatest extent feasible,” businesses working on projects that receive certain financial assistance from HUD must make a good faith effort to train and hire Section 3 Workers, and contract with Section 3 Business Concerns.
The program is implemented and regulated by Part 75 of Title 24 of the Code of Federal Regulations (24 CFR 75).
Employment opportunities for San Diego Housing Commission (SDHC) certified Section 3 Workers may include: professional, technical, construction, maintenance and administrative.
Contracting and/or subcontracting opportunities for SDHC certified Section 3 Business Concerns include, but are not limited to: Construction, professional services, and general services.
SDHC complies with Section 3 within its own operations and ensures the compliance of its sub-recipients, developers, contractors, and subcontractors.
SDHC Section 3 Unit
The SDHC Section 3 Unit leads the agency-wide implementation and compliance with Section 3.
Role of SDHC’s Section 3 Unit:
- Administer program
- Monitor compliance
- Certify Section 3 Workers and Section 3 Business Concerns
- Provide technical and outreach assistance
- Notify Section 3 Workers and Section 3 Business Concerns of economic opportunities
SDHC Section 3 Implementation Plan
Contract Compliance
Sub-recipients, developers, contractors and subcontractors on SDHC Section 3 covered contracts and projects must, to the greatest extent feasible, make a documented effort to award contracts to qualified Section 3 Business Concerns and hire qualified Section 3 Workers, when there is a need to award contracts and/or hire new employees. Section 3 Workers are to be employed per the HUD Section 3 benchmark:
- At least 25 percent of total labor hours worked by Section 3 Workers; and
- At least 5 percent of total labor hours worked by Section 3 Workers who reside in public housing, HUD Section 8 assisted housing, or within one mile of the Section 3 covered project; an employee of a Section 3 Business Concern; or a YouthBuild participant.
Registry of Section 3 Business Concerns
Examples of Efforts to Create Employment and Contracting Opportunities
Section 3 and Equal Opportunity Contracting Project Utilization Plan
For assistance in identifying certified Section 3 Residents and Section 3 Business Concerns, contact SDHC’s Section 3 Unit at (619) 578-7579 or section3@sdhc.org
Economic Opportunities
Training and Employment for Section 3 Workers
SDHC’s Section 3 Unit assists Section 3 Workers, individuals who are low-income and reside in the County of San Diego, in obtaining employment with SDHC, businesses performing on HUD Section 3 covered contracts or projects, and local employers. An eligible individual who certifies as a Section 3 Worker with SDHC is placed on a registry and is notified of employment and training opportunities.
Section 3 Worker Certification Form
Contracts for Section 3 Business Concerns
SDHC’s Section 3 Unit assists businesses that qualify as Section 3 Business Concerns in the County of San Diego to obtain contracting opportunities on HUD Section 3 covered contracts and projects. A Section 3 Business Concern is a businesses that is:
- At least 51 percent owned by low-income individuals that reside in the County of San Diego; or
- At least 75 percent of the labor hours performed for the business over the prior three-month period were performed by low-income persons who reside in the County of San Diego.
An eligible business that certifies as a Section 3 Business Concern with SDHC is placed on a registry and is notified of contracting opportunities, business development workshops and conferences; and is referred to businesses who are seeking Section 3 Business Concerns.
Section 3 Business Concern Certification Form
SDHC Open Solicitations (SDHC Vendor Portal)
For questions, contact the SDHC Section 3 Unit at (619) 578-7579 or section3@sdhc.org.
