Section 3

Section 3 of the Housing and Urban Development Act of 1968 provides economic and employment opportunities to low and very low income individuals. Section 3 requires recipients of certain types of HUD funding to ensure that a certain percentage of the job training, employment, and contracting opportunities that arise from the expenditure of the funds benefit low and very low income individuals. As a recipient of HUD funding, New York City tracks and reports on how its programs benefit low and very low income individuals.

Below are the links to the reporting forms for Federal Fiscal Year (FFY) 2019.
CDBG-DR Section 3 FFY 2019 Reporting Forms: 

Section 3 goals are applicable pursuant to 24 CFR 135 as dictated by the U.S. Department of Housing and Urban Development (HUD).

“Section 3 of the Housing and Urban Development Act of 1968 ensures that employment, training and contracting generated by certain HUD financial assistance shall, to the greatest extent feasible, be directed to low- and very low-income persons…and to business concerns which provide economic opportunities to (those) persons.”

Section 3 Numerical Goals

  1. 30% of all new hires on applicable projects will be Section 3 residents; and
  2. 10% of the dollar amount of Construction Contracts awarded to Section 3 Business Concerns
  3. 3% of the dollar amount of Non-Construction Contracts awarded to Section 3 Business Concerns

What is a Section 3 Business Concern?

  1. 51% or more owned by Section 3 Residents; or
  2. Substantially employs (30% or more) Section 3 residents; or
  3. Can provide evidence of a commitment to award 25% of dollar amount of subcontracts to businesses in categories 1 & 2 above.

Further information can be found on the HUD Section 3 website. If your firm is interested in registering as a Section 3 Business Concern please visit the Section 3 Business Registry.

Find Qualified Section 3 Residents: Workforce 1 Career Centers

Workforce1 is a service provided by the NYC Department of Small Business Services that prepares and connects qualified candidates to job opportunities in New York City. Workforce1 makes strong matches for both candidates and employers by using a unique combination of recruitment expertise, industry knowledge, and skill-building workshops to strengthen candidates' employment prospects. Account Managers save businesses time and money by recruiting and screening jobseekers from a citywide pool of thousands of candidates and referring the most qualified to them.

Please visit the NYC's Small Business Services website for more information.