Section 3 Program
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 is a starting point for people with low- or very-low incomes to obtain job training, employment and contracting opportunities.
Who are Section 3 residents?
Section 3 residents are:
- Houston Housing Authority public housing residents or
- Persons who live in the City of Houston and who have a household income that falls below HUD’s area median family income limits.
This chart provides the area median family income for Houston as of March, 2010:
HUD 2012 Annual Income Limits For |
|||
Family Size |
30% Median |
50% Median |
80% Median |
1 |
$14,050 |
$23,450 |
$37,450 |
2 |
$16,050 |
$26,800 |
$42,800 |
3 |
$18,050 |
$30,150 |
$48,150 |
4 |
$20,050 |
$33,450 |
$53,500 |
5 |
$21,700 |
$36,150 |
$57,800 |
6 |
$23,300 |
$38,850 |
$62,100 |
7 |
$24,900 |
$41,500 |
$66,350 |
8 |
$26,500 |
$44,200 |
$70,650 |
Determining Income Levels
- Low income is defined as 80% or below the area median family income for Houston.
- Very low income is defined as 50% or below the area median family income for Houston
What is a Section 3 business concern?
A business that:
- Is 51 percent or more owned by Section 3 residents;
- Employs Section 3 residents for at least 30 percent of its full-time, permanent staff; or
- Provides evidence of a commitment to subcontract to Section 3 business concerns, 25 percent or more of the dollar amount of the awarded contract.
What programs are covered?
Section 3 applies to HUD-funded Public and Indian Housing assistance for development, operating, and modernization expenditures.
Section 3 also applies to certain HUD-funded Housing and Community Development projects that complete housing rehabilitation, housing construction, and other public construction.
The following documents can help you understand Section 3 and the City of Houston’s Housing and Community Development Department’s (HCDD) commitment to Section 3.
General Information
- Introduction to Section 3 of the HUD Act of 1968
- Learn More About Section 3
- Section 3 Brochure
- Section 3 Brochure (Spanish version)
- Section 3 Regulations
- Section 3 Definitions
- Section 3 Low to Moderate Income Areas-Map
HCDD Policy
- Section 3 Program Policy Guide (.doc, 06.29.2012)
- Frequently Asked Questions (.pdf, 12.05.2011)
Commercial / Multifamily Forms
- Certification Procedures for Section 3 Residents
- Section 3 Certification Form for Residents (.pdf, 07.26.2012)
- Section 3 Business Application (.doc, 01.30.2012)
- HUD Income Limits Certification worksheet (.doc, 8.17.2011)
- Section 3 Contractors Orientation Guide (.doc, 02.02.2012)
- Section 3 Compliance Packet (.doc, 04.25.2012)
Complaint Process
Business Concerns
- Section 3 Database (.xls, 04.16.2012, posted 04.17.2012)
- Certified Section 3 Residents - ADD (.xls, 04.17.2012, posted 04.17.2012)
If you have any questions about Section 3, please contact the following HCDD staff at (713) 868-8300:
- For Commercial or Multifamily Projects, contact Karen Franklin
- For Single Family Projects, contact Michael Dotson
- For general information or HCDD administrative issues, contact Royce Sells