Understanding HUD Section 3

Section 3 is a provision of the Housing and Urban Development Act of 1968 that helps foster local economic development, neighborhood economic improvement and individual self-sufficiency.

The Section 3 program requires that recipients of certain HUD financial assistance, to the greatest extent possible, provide job training, employment, and contract opportunities for low- or very-low income residents in connection with projects and activities in their neighborhoods.

Section 3 applies to certain HUD-funded Housing and Community Development projects that complete housing rehabilitation, housing construction, and other public construction.

If you live in government-assisted housing or if your household income falls below 80% of the Austin Round Rock MSA income limits you may qualify as a Section 3 resident or Section 3 business concern

How do you Qualify?

Section 3 residents are:

  • Public housing residents or
  • Persons who live in the area where a HUD-assisted project is located and who have a household income that falls below HUD’s income limits

Use HUD’s Opportunity Portal to search for jobs and training postings or post your resume.

Section 3 business concern is

A business that:

  • Is 51% or more owned by Section 3 residents;
  • Employs Section 3 residents for at least 30% of its full-time, permanent staff; or
  • Provides evidence of a commitment to subcontract to Section 3 business concerns, 25% or more of the dollar amount of the awarded contract.

What is the HUD Section 3 Business Registry?

Register your Business on the HUD Section 3 Business Registry.

Find a HUD Section 3 Business.

Section 3 FAQs

You can find more information on HUD’s Section 3 website and their FAQs page.