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Section 3
Existing NYCHA Vendors
Effective 7/10/2023, NYCHA's Section 3 Business Concern (S3BC) Registry has moved from iSupplier to NYCHA's online labor compliance software tool, eComply. NYCHA vendors who qualify as an S3BC (see below, "What is a Section 3 Business Concern?") must register in eComply to be added to NYCHA's S3BC public registry/directory. The current listing of NYCHA S3BCs is available in the NYCHA S3BC public registry. This legacy document (also available in eComply) will continue to be available until all currently registered S3BCs have been contacted and asked to re-register with NYCHA as an S3BC in eComply.
New NYCHA Vendors
If your company has never done business with NYCHA, you must first register your company with NYCHA through iSupplier: register as a new NYCHA vendor in iSupplier. After you register in iSupplier, you must register in eComply to be added to NYCHA's S3BC public registry/directory. Please see the section below ("What is a Section 3 Business Concern?") to determine if your business qualifies as a Section 3 Business Concern.
Have questions about the S3BC registration process?
NYCHA's Supply Management & Procurement Department – Vendor Diversity
Email: smp.section3@nycha.nyc.gov
You may also reference the S3BC registration guide (PDF), which offers a step-by-step outline of the S3BC registration process.
Section 3 New Rule
On September 29, 2020, HUD published the Section 3 Final Rule with an effective date of November 30, 2020.
Section 3 is a provision of the Housing and Urban Development Act of 1968. The purpose of Section 3 is to ensure that economic opportunities, most importantly employment, generated by certain HUD financial assistance shall be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing or residents of the community in which the Federal assistance is spent.
For further guidance on NYCHA's Section 3 requirements, please refer to the resource documents below.
- Section 3 Compliance Guidance for NYCHA DECAR and other Non-Professional Services Contracts (PDF)
- Section 3 Compliance Guidance for NYCHA Professional Services Contracts (PDF)
- Section 3 Resource (PDF)
HUD Section 3 Links
| Section 3 Form Name | NYCHA Form Number | Description of NYCHA Form | Submission | NYCHA Department |
|---|---|---|---|---|
| Section 3 & Resident Economic Opportunity (REO) Plan | NYCHA 136.122 (PDF) | Contractor's plan for achieving the Section 3 labor hour benchmarks, which includes the projected labor hours and commitment to recruit Section 3 workers | Pre-Award | Resident Economic Empowerment & Sustainability (REES)* section3.rees@nycha.nyc.gov |
| Other Economic Opportunities (OEO) Plan† | NYCHA 136.137 (PDF) | Submitted in addition to the Section 3 REO Plan (for professional contracts in excess of $250k†) when there are no labor hours projected | Pre-Award | Resident Economic Empowerment & Sustainability (REES)* section3.rees@nycha.nyc.gov |
| Section 3 Labor Hour Summary | NYCHA 136.138 (PDF) | Form used to track a contractor's progress in achieving the Section 3 labor hour benchmark implemented under the new rule | Post-Award | Vendor Diversity section3.smp@nycha.nyc.gov |
| Self-Certification: Section 3 Worker/Targeted Section 3 Worker | NYCHA 136.139 (PDF) | Form completed by Section 3 Workers and Targeted Section 3 Workers to certify their Section 3 status. The Quick Tutorial for Verification as a Section 3 Worker (PDF) is also available. | Post-Award | Vendor Diversity section3.smp@nycha.nyc.gov |
| Other Economic Opportunities (OEO) Outcome Summary† | NYCHA 077.005 (PDF) | Form used in lieu of Section 3 Labor Hour Summary (for professional service contracts in excess of $250k†) to document progress in providing other economic opportunities | Post-Award | Vendor Diversity section3.smp@nycha.nyc.gov |
† NYCHA will apply the Section 3 Final Rule to professional service contracts with an option to provide Other Economic Opportunities (OEO).
* Please contact REES for assistance with sourcing NYCHA resident hires.
Section 3 Minimum Numerical Goals
A NYCHA contractor may demonstrate compliance with Section 3 as follows:
- Twenty-five (25) percent or more of the total number of labor hours worked by all workers employed with public housing financial assistance in the PHA's or other recipient's fiscal year are Section 3 workers; and
- Of which five (5) percent or more of the total number of labor hours worked by all workers employed with public housing financial assistance in the PHA's or other recipient's fiscal year are Targeted Section 3 workers
What is a Section 3 Worker?
A Section 3 worker is any worker who currently fits, or when hired within the past 5 years fit, at least one of the following categories, as documented:
- The worker's income for the previous or annualized calendar year is below the income limit established by HUD; or
- The worker is employed by a Section 3 business concern; or
- The worker is a YouthBuild participant
What is a Targeted Section 3 Worker?
For public housing financial assistance projects, HUD defines a Targeted Section 3 worker as a Section 3 worker who is also:
- A worker employed by a Section 3 business concern; or
- A worker who is currently, or who was when hired by the worker's current employer, a resident in a public housing project or Section 8-assisted housing; or
- A resident of other projects managed by the PHA that is expending assistance; or
- A current YouthBuild participant
What is a Section 3 Business Concern?
A Section 3 business concern is a business concern meeting at least one of the following criteria, documented within the last six-month period:
- It is a business at least 51% owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing; or
- It is at least 51% owned and controlled by low- or very low-income persons; or
- Over 75% of the labor hours performed for the business over the prior three-month period are performed by Section 3 workers
What Is a Registered Section 3 Business Concern?
- A Registered Section 3 Business Concern is a Section 3 Business Concern that has registered with NYCHA through the submission of a completed Self-Certification Form.
- Please be advised that by registering as a "Section 3 Business Concern," your business and the information provided will be added to a publicly accessible database of NYCHA-recognized Section 3 Business Concerns that NYCHA and/or its contractors and vendors can access to fulfill the Section 3 Business Concern provisions in NYCHA's contracts with its contractors and vendors. By registering as a Section 3 Business Concern, your business may be subject to audits, including by NYCHA and the United States Department of Housing and Urban Development.
- While registering as a Section 3 Business Concern may give your business certain preferences, such registration is not a guarantee of any such preferences or that your business will be awarded any contracts or subcontracts by NYCHA or its contractors or vendors.
- This registration will be effective for three years from the date that your business is posted in the publicly accessible database identified above. NYCHA, however, reserves the right to request your business to re-register as a Section 3 Business Concern at any time. Failure to re-register as a Section 3 Business Concern, either after the expiration of the three-year period or upon NYCHA's request, will ultimately result in the removal of your business from the database.
Refer to the HUD individual income limit chart, established annually by HUD, to determine if you or your employees qualify as low-income.
What is the Section 3 Business Registry?
The Section 3 Business Registry is a listing of firms that have self-certified that they meet one of the regulatory definitions of a Section 3 business. This publicly published list can be used by agencies that receive HUD funds, developers, contractors, and others to facilitate the award of certain HUD-funded contracts.
This registry is a helpful tool to assist recipients of HUD funding (for example, Public Housing Agencies, local units of government, and property owners), developers, and others locate Section 3 businesses within their community. It also enables HUD grantees to meet their Section 3 obligations by reducing some of the burden associated with locating eligible businesses.
It is important to note that Section 3 businesses are not entitled to receive contracts simply by being listed in NYCHA's Self-Certified Section 3 Business Concerns Registry database. Eligible businesses may need to demonstrate that they are responsible and have the ability to perform successfully under the terms and conditions of proposed contracts. While NYCHA maintains the Business Registry database, it has not verified the information submitted by the businesses and does not endorse the services they provide. Accordingly, it is recommended that users perform due diligence before awarding contracts to firms that have self-certified on this registry, by ensuring that they meet the definition of a Section 3 business concern as defined above.