Section 3 HUD Act of 1968
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 recipients of certain HUD financial assistance provide job training, employment, and contracting, to the greatest extent feasible, for low- or very low-income residents in connection with projects and activities in their neighborhoods.
The requirements of Section 3 apply to recipients of HUD Housing and Community Development funding exceeding $200,000. Further, contractors and subcontractors that receive contracts in excess of $100,000 for Section 3 covered projects/activities are required to comply with the Section 3 regulations in the same manner as direct recipients.
How Does Section 3 Apply to St. Louis County Residents and Businesses?
St. Louis County is a recipient of federal funding from HUD. Whenever any portion of HUD funding is invested into projects involving housing construction, demolition, rehabilitation, or other public construction (i.e., roads, sewers, community centers, etc.), the requirements of Section 3 may apply. Section 3 is triggered when the normal completion of construction and rehabilitation projects creates the need for new employment, contracting, or training opportunities. When triggered, Section 3 opportunities must be extended to residents and businesses which meet the following criteria:
A Section 3 Resident is:
- A public housing resident; or
- An individual who resides in St. Louis County and who is:
- A low-income person, meaning families (including single persons) whose incomes do not exceed 80% of the median income for the area, as determined by HUD.
- A very low-income person, as this term is defined to mean families (including single persons) whose incomes do not exceed 50% of the median family income for the area, as determined by HUD.
A low-income person is defined as families (including persons) whose incomes do not exceed 50% of the median family income for the area, with adjustments for smaller and larger families.
A moderate-income person is defined as families (including persons) whose incomes do not exceed 80% of the median family income for the area, with adjustments for smaller and larger families.
A Section 3 Business is:
- Businesses that are 51% or more owned by Section 3 residents; or
- Businesses whose permanent full-time employees include persons, at least 30% of whom are currently Section 3 residents, or within three years of the date of first employment with the firm were Section 3 residents; or
- Businesses that provide evidence of a commitment to subcontract in excess of 25% of the dollar amount of all subcontracts to be awarded to businesses that meet the qualifications described above.
What are Section 3 Employment Opportunities?
For training and employment, four categories of low-income persons (called Section 3 residents) receive priority:
- those living near a HUD-assisted project;
- participants in YouthBuild programs;
- homeless persons; and
- other Section 3 eligible residents, including residents of public and assisted housing
Economic opportunities available under Section 3 include:
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What are St. Louis County’s goals with regard to Section 3?
The St. Louis County Office of Community Development commits to working with Section 3 Residents and Businesses through HUD-funded programs to the greatest extent feasible. Although we would like our Section 3 Participation to be much higher, our minimum goals are as follows:
- 30% of the aggregate number of new hires (for jobs created by HUD-funded projects) shall be Section 3 residents;
- 10% of the total dollar amount of all covered construction contracts shall be awarded to Section 3 business concerns; and
- 3% of the total dollar amount of all covered non-construction contracts shall be awarded to Section 3 business concerns
How do I become a Certified Section 3 Resident or Business with St. Louis County?
Residents and Businesses interested in becoming Section 3 Certified should contact the St. Louis County Section 3 Program at 314 615-8672 or via email at [email protected].
Applications for the Section 3 Program can be found here:
Certification with the Section 3 Program is not an offer of employment.
Certifications are valid for three (3) years and it is the responsibility of the approved Resident and/or Business to renew their certification at the end of the certification period.
In order to remain in compliance with the Section 3 Program, Certified Businesses and Residents will need to participate in annual, and possibly quarterly, reporting requirements while working on Section 3 covered projects, depending on the scale and scope of the projects.
Once certified as a Section 3 Resident and/or Business, how do I apply for Section 3 jobs?
Certified Residents and Businesses will be placed on a list maintained by St. Louis County and offered to local businesses when they are hiring for Section 3 covered projects in the area. The hiring parties will contact all applicable Section 3 Residents and Businesses based on the contact information provided on their application.
In certain situations, Certified Residents and Businesses will have preference over their non-Section 3 peers for possible employment on Section 3 covered projects, but still must undergo the job application or interview process of the potential employers to ensure the best fit for both parties.
Section 3 Businesses are also encouraged to register with the U.S. Department of Housing and Urban Development federal registry here.
What are the training opportunities for the low-income residents?
Training opportunities are available year-round through the St. Louis County Workforce Development Career Seeker Services
Residents are encouraged to contact the Section 3 Program for the most up-to-date listings of applicable classes and course offerings by calling 314 615-8672 or via email at [email protected].