Section 3 of the HUD Act of 1968 requires that
employment and other economic opportunities generated by certain HUD financial
assistance shall, to the greatest extent feasible, 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.
TYPES OF ASSISTANCE:
Investigation of Complaints. Place Cursor Here for Definition
USES AND USE RESTRICTIONS:
Section 3 applies to training, employment, contracting
and other economic opportunities arising from the expenditure of public and
Indian housing development, operating and modernization assistance; and to
training, employment and other economic opportunities arising in connection
with the expenditure of housing and community development assistance that is
used for housing rehabilitation (including reduction and abatement of
lead-based paint hazards), housing construction and other public construction.
Section 3 also applies to financial assistance in the form of insurance or
guaranty or to tenant- based assistance.
Applicant Eligibility: Public
and Indian Housing Programs: (1) Training and employment opportunities -- (i)
public housing residents; or (ii) an individual who resides in the
metropolitan area or non- metropolitan county in which the Section 3 covered
assistance is expended, and who is a low- or very low-income person. (2)
Contract opportunities -- (i) business concerns that are 51 percent or more
owned by residents of the housing development or developments for which the
Section 3 covered assistance is expended, or whose full-time, permanent
workforce includes 30 percent of these persons as employees; or (ii) business
concerns that are 51 percent or more owned by residents of other housing
developments or developments managed by the housing authority that is
expending the Section 3 covered assistance or whose full-time permanent
workforce includes 30 percent of these persons as employees; or (iii) HUD
Youthbuild programs being carried out in the metropolitan area in which the
Section 3 covered assistance is expended; or (iv) business concerns that are
51 percent or more owned by Section 3 residents, or whose permanent, full-time
workforce includes no less than 30 percent Section 3 residents or that
subcontract in excess of 25 percent of the total amount of subcontracts to
business concerns identified in (i) and (ii) above. Housing and Community
Development Programs: (1) training and employment opportunities -- (i) Section
3 residents residing in the service area or neighborhood in which the Section
3 covered project is located; (ii) participants in HUD Youthbuild programs;
(iii) homeless persons residing in the service area or neighborhood in which
the Section 3 covered project is located; and (iv) other Section 3 residents.
(2) Contract opportunities: -- (i) Section 3 business concerns that provide
economic opportunities for Section 3 residents in the service area or
neighborhood in which the Section 3 covered project is located; (ii)
applicants selected to carry out HUD Youthbuild programs; and (iii) Other
Section 3 business concerns. Any Section 3 resident or Section 3 business
concern may file a complaint alleging noncompliance with Section 3.
Complainant individuals who are Section 3 residents or a Section 3 business
In fiscal year 2001, 41 complaints filed under Section 3
REGULATIONS, GUIDELINES, AND LITERATURE:
Employment Opportunities for Businesses and Lower Income
Persons in Connection with Assisted Projects, 24 CFR Part 135.
Regional or Local Office: HUD
Field Office, Fair Housing Enforcement Center or Program Operations and
Compliance Center: Director, Fair Housing and Equal Opportunity in the
appropriate HUD Office listed in Appendix IV of the Catalog.
Headquarters Office: John
H. Waller, Office of Fair Housing and Equal Opportunity, Department of Housing
and Urban Development, 451 7th Street, SW., Room 5112, Washington, DC 20410.
Telephone: (202) 708-3633, ext 7048. E-mail: John_H._Waller@hud.gov.
Web Site Address: http://www.hud.gov/progdesc/fheoindx.html