City of Springfield
Department of Technical Assistance and Compliance
Section 3 - Local Jobs Initiative
Housing and Urban Development Guidelines for Economic Development
What is Section 3?
Section 3 is a provision of the Housing and Urban Development Act of 1968. The purpose of Section 3 is to ensure that employment and other economic opportunities generated by certain HUD financial assistance shall, 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.
It is essential to keep HUD dollars local to help foster local economic development and neighborhood economic improvement. Opportunities also come in the form of employment training and business ownership opportunities.
Any developer/contractor working on a HUD funded housing, rehabilitation or public construction project is subject to the following numerical goals:
All Workers = Total number of labor hours worked on the project
Section 3 Workers = 25% of total number of labor hours worked by Section 3 workers
Targeted Section 3 Workers = 5% of total number of labor hours worked by Targeted Section 3 workers
The figures are showing the benchmarks for Section 3 Labor hours. Labor hours are defined as hours worked by all workers employed on a Section 3 project.
The benchmark for Section 3 Workers is set at 25% or more of the Total number of labor hours worked by all workers .
The benchmark for Targeted Section 3 Workers is set at 5% or more of the total number of labor hours worked by all workers. This means that the 5% is included as part of the 25% threshold.
In addition, award of contract dollars to Section 3 businesses (hard cost) is encouraged to meet the benchmarks.
Why Get Certified as a Section 3 Resident or Business?
Section 3 helps low-very income residents get the skills and jobs needed to become self-sufficient.
Section 3 also provides opportunities for qualified businesses to receive preference for HUD-funded contracts.