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SECTION 3 REQUIREMENTS
WHAT YOU NEED TO KNOW ABOUT SECTION 3
What is Section 3?
Section 3 is a provision of the Housing and Urban Development Act of 1968, as amended by the Housing and
Community Development Act of 1992(section 3). The purpose of Section 3 is to ensure that employment and
other economic opportunities generated by certain HUD financial assistance shall go to the greatest extent
feasible, and consistent with existing Federal, State, and local laws and regulations, be directed to low-and very
low-income persons, particularly those who are recipients of government assistance for housing, and to business
concerns which provide economic opportunities to low- and very low-income persons, identified as Section 3
workers or targeted Section 3 worker.
What is a “Section 3 Worker”?
A Section 3 worker is any worker who currently fits, or when hired within the past five years fit, at least one of
the following categories, as documented:
1. The individual worker's income for the previous or annualized calendar year is below the income limit
established by HUD; the income limit for 2024 is $56,400.
2. The worker is employed by a Section 3 business concern.
3. The worker is a YouthBuild participant.
What is a “Targeted Section 3 Worker”?
A section 3 targeted worker for Public Housing Financial Assistance projects are workers who:
1. Are employed by a Section 3 business concern; or
2. Currently fits or when hired fit at least one of the following categories, as documented within the past
five years:
a. A resident of public housing or Section 8 assisted housing.
b. A resident of other public housing projects or Section 8 assisted housing managed by the PHA
that is providing the assistance; or
c. A YouthBuild participant.
A Section 3 targeted worker for Housing and Community Development Financial Assistance
projects are workers who:
1. Are employed by a Section 3 business concern.
2. Currently fits or when hired fit least one of the following categories, as documented within
the past five years:
a. Living within the service area of the neighborhood of the project.
. b. A YouthBuild participant.
Marshall Courts Phase VII Demolition
IFBEMCP7D-09-24 ATTACHMENT “J”
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