A Guide to Section 3 Housing and Businesses
The Housing and Urban Development Act of 1968 includes a provision known as Section 3. It specifies that financial assistance will be granted for housing or community development to provide economic opportunities to residents and businesses in that area.
If you’ve never heard of Section 3 and you’re wondering what it’s all about, keep reading! This guide offers insight into what Section 3 means for residents and businesses.
What is Section 3?
Section 3 can provide the support needed to help underserved communities grow. It’s a way that the U.S. Department of Housing and Urban Development (HUD) promotes local economic development, neighborhood economic improvement, and individual self-sufficiency.
This provision provides jobs for residents and awards contracts to businesses in areas that receive certain types of HUD financial assistance.
Who is Section 3 Available To?
Section 3 is open to Public Housing residents and other low income, or very low-income residents served by HUD-assisted projects for housing or community development. To qualify for Section 3 housing, you must fall into one of two categories that define income level.
- Low income is defined as 80% or below the median income of that area.
- Very low income is defined as 50% or below the median income of that area.
Section 3 housing is a way for lower-income people to have a safe, affordable place to call home. It’s designed to give a path to self-sufficiency when a person or family struggles to afford the basics like food, water, and shelter. In providing these programs, we give residents a way to alleviate some of the burdens associated with poverty.
How to Register for Section 3 Housing
Section 3 Businesses
You can think of a Section 3 business as an incubator for community growth. They’re committed to employing those who live in public housing as a lever to spur self-sufficiency and community stability.
Section 3 businesses meet one of the following criteria:
- 51% or more owned by residents of public housing or persons whose income does not exceed HUD’s local area low-income limits, or
- Comprised of 30% or more full-time employees who are Section 3 residents, or
- Can demonstrate a commitment to award 25% or more of sub-contracts to other Section 3 businesses.
How to Register a Business for Section 3
Register with the Section 3 Business Registry by going to HUD’s website. HUD also has an Opportunity Portal that helps match Section 3 Workers to jobs and training opportunities and Section 3 Businesses to contracting opportunities.
PMHA Is Here to Help
If you need more information about public housing options or Section 3, we’re here to answer your questions and help you learn more.