Employment Opportunities for Lower Income Persons and Businesses

Section 3 of the HUD Act of 1968 requires that employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, 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.

Agency - Department of Housing and Urban Development

The Department of Housing and Urban Development's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. HUD fulfills this mission through high ethical standards, management and accountability, and by forming partnerships with community organizations.

Office - HUD Field Office, Fair Housing Enforcement Center or Program Operations and Compliance Center: Director, Fair Housing and Equal Opportunity in the appropriate HUD Office listed in Appendix IV of the Catalog.


Program Accomplishments

In FY 2007, the Section 3 Division completed 17 Section 3 compliance and monitoring reviews and responded to more than 14 requests for technical assistance nationwide. The Division estimates completing Section 3 Compliance Reviews and/or providing Technical Assistance to 20 recipients of Section 3 covered financial assistance in FY 2008.

Uses and Use Restrictions

Section 3 applies to training, employment, contracting and other economic opportunities arising from the expenditure of public and Indian housing development, operating and modernization assistance; and to training, employment and other economic opportunities arising in connection with the expenditure of housing and community development assistance that is used for housing rehabilitation (including reduction and abatement of lead-based paint hazards), housing construction and other public construction.

Section 3 also applies to financial assistance in the form of insurance or guaranty or to tenant-based assistance.

Eligibility Requirements

Applicant Eligibility

Public and Indian Housing Programs: (1) Training and employment opportunities --(i) public housing residents; or (ii) an individual who resides in the metropolitan area or non-metropolitan county in which the Section 3 covered assistance is expended, and who is a low- or very low-income person.

(2) Contract opportunities -- (i) business concerns that are 51 percent or more owned by residents of the housing development or developments for which the Section 3 covered assistance is expended, or who's full-time, permanent workforce includes 30 percent of these persons as employees; or (ii) business concerns that are 51 percent or more owned by residents of other housing developments or developments managed by the housing authority that is expending the Section 3 covered assistance or whose full-time permanent workforce includes 30 percent of these persons as employees; or (iii) HUD Youth build programs being carried out in the metropolitan area in which the Section 3 covered assistance is expended; or (iv) business concerns that are 51 percent or more owned by Section 3 residents, or whose permanent, full-time workforce includes no less than 30 percent Section 3 residents or that subcontract in excess of 25 percent of the total amount of subcontracts to business concerns identified in (i) and (ii) above.

Housing and Community Development Programs: (1) training and employment opportunities -- (i) Section residents residing in the service area or neighborhood in which the Section 3 covered project is located; (ii) participants in HUD Youthbuild programs; (iii) homeless persons residing in the service area or neighborhood in which the Section 3 covered project is located; and (iv) other Section 3 residents.

(2) Contract opportunities: -- (i) Section 3 business concerns that provide economic opportunities for Section 3 residents in the service area or neighborhood in which the Section 3 covered project is located; (ii) applicants selected to carry out HUD Youthbuild programs; and (iii) Other Section 3 business concerns.

Any Section 3 resident or Section 3 business concern may file a complaint alleging noncompliance with Section 3.

Beneficiary Eligibility

Complainant individuals who are Section 3 residents or a Section 3 business concern.

Credentials/Documentation

Not applicable.

Aplication and Award Process

Preapplication Coordination

This program is excluded from coverage under E.O.

12372.

Application Procedures

Complaints may be sent to HUD Headquarters, Office of Fair Housing and Equal Opportunity, Economic Opportunity Division.

Award Procedures

Not applicable.

Deadlines

Complaints must be received within 180 days of the date of the alleged non-compliance with Section 3.

Authorization

Housing and Urban Development Act of 1968, Section 3, 12 U.S.C. 1701u.

Range of Approval/Disapproval Time

Approximately six months.

Appeals

Not applicable.

Renewals

Not applicable.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula.

Length and Time Phasing of Assistance

Not applicable.

Post Assistance Requirements

Reports

Not applicable.

Audits

Not applicable.

Records

Not applicable.

Financial Information

Account Identification

86-0143-0-1-999.

Obigations

(Salaries and expenses) Not separately identifiable.

Range and Average of Financial Assistance

Not applicable.

Regulations, Guidelines, and Literature

12 U.S.C. 170lu; 24 CFR Part 135.

Information Contacts

Regional or Local Office

HUD Field Office, Fair Housing Enforcement Center or Program Operations and Compliance Center: Director, Fair Housing and Equal Opportunity in the appropriate HUD Office listed in Appendix IV of the Catalog.

Headquarters Office

Staci Gilliam Hampton, Director, Economic Opportunity Division, Office of Fair Housing and Equal Opportunity, Department of Housing and Urban Development, 451 7th Street, S.W., Room 5232, Washington, DC 20410. Telephone: (202) 708-3633, extension 3468. E-mail: Staci.Gilliam.Hampton@hud.gov.

Criteria for Selecting Proposals

Not applicable.



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