What is Section 3?
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 KHA certified Section 3 Residents may include professional, technical, construction, and administrative.
- Contracting and/or subcontracting opportunities for KHA certified Section 3 Businesses include but are not limited to construction, professional services, and general services.
- The Housing Authority of Kinston (KHA) complies with Section 3 within its own operations and ensures the compliance of its sub-recipients, developers, contractors, and subcontractors.
To learn more about Section 3 visit the HUD website.
Sub-recipients, developers, contractors, and subcontractors on KHA 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 they 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).
- 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.
For assistance in identifying certified Section 3 Residents and Section 3 Business Concerns, contact the KHA Office.