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 funding invested in housing and community development shall provide contracts, employment, training, and other economic opportunities to low- and very low-income people in the local jurisdiction and to businesses that provide such opportunities, also known as “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 low- and very low-income individuals, and contract with businesses that do so.
The program is implemented and regulated by Part 135 of Title 24 of the Code of Federal Regulations (24 CFR 135).
Employment opportunities for San Diego Housing Commission (SDHC) certified Section 3 Residents may include: professional, technical, construction, and administrative.
Contracting and/or subcontracting opportunities for SDHC certified Section 3 Businesses 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 Residents and Section 3 Business Concerns
- Provide technical and outreach assistance
- Notify Section 3 Residents 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 achieve the HUD Section 3 numerical goals by awarding contracts to qualified Section 3 Business Concerns and employing qualified Section 3 Residents, if the need to award contracts and/or hire new employees occurs:
- Employ Section 3 Residents as 30 percent of all new hires during a one-year period of the project (i.e., A construction contractor hires 10 new workers; 3 of the new workers should be Section 3 Residents).
- Contracting:
- Award Section 3 Business Concerns at least 10 percent of the total contract dollar amount for construction or rehabilitation services; and
- Award Section 3 Business Concerns at least 3 percent of the total contract dollar amount for non-construction services.
Registry of Section 3 Business Concerns
Examples of Efforts to Award 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 Residents
SDHC’s Section 3 Unit assists Section 3 Residents, 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 Resident with SDHC is placed on a registry and is notified of employment and training opportunities.
Section 3 Resident 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. Section 3 Business Concerns are businesses that are:
- Majority-owned by low-income individuals that reside in the County of San Diego;
- Employ low-income persons who reside in the County of San Diego as 30 percent of their full-time workforce; or
- Provide evidence of a commitment to subcontract more than 25 percent of the dollar amount of the awarded contract to Section 3 Business Concerns
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.
