SECTION 3 PROGRAM OVERVIEW
Each year the U.S. Department of Housing & Urban Development (HUD) invest billions of federal funds into distressed communities for projects, such as 1) building and rehabilitating housing; improving roads and community centers; and helping families become self-sufficient. HUD funding includes regulations for Section 3 acknowledges that their projects typically seek to generate new contracting, employment, and other economic opportunities; beyond brick and mortar. Recipients of HUD funding (such as the HHA) are mandated to comply with regulations established for Section 3; to the greatest extent possible.
WHAT IS SECTION 3?
Section 3 represents HUD’s policies requiring Recipients to provide preferences for low-income job seekers and/or business owners to pursue new jobs, training and contracting opportunities. These new opportunities are offered by HUD’s Recipients to target:
- Low and very low-income individuals, and
- Businesses whose majority ownership is held by low and very-low-income individual(s) and/or employ low and very low-income individuals
SECTION 3 @ HHA
Since HHA is a recipient of HUD funding, we are committed to offering new opportunities in compliance with HUD’s Section 3 requirements. The HHA has a dedicated staff person serving as a point of contact for Section 3 which also includes execution of agency policies. Eligible Section 3 individuals and/or business owners, within the City of Houston and Harris County, will be targeted for new jobs, training and/or contracting opportunities offered by HHA.
ELIGIBLE SECTION 3 PARTICIPANTS?
HHA’s Section 3 program defines Section 3 participants as low and very low-income persons who meet annual income limits provided by HUD. In addition to meeting income limits, eligible individuals must also be a:
- Public Housing resident, or
- Housing Choice Voucher participant (Section 8), or
- Youth Build participant, or
- Participant of another federally-assisted program.
ELIGIBLE SECTION 3 BUSINESSES?
HHA’s Section 3 program defines Section 3 Business as entities whose ownership is held by the majority of Section 3 individuals and/or whose employees are majority Section 3 individuals. Remember, Section 3 individuals are persons whose income is low to very low as established by HUD. Below is a list of business entities who are eligible to be listed as a Section 3 Business or Business Concern. An entity whose:
- Ownership is held by 51% or more by Section 3 participant(s), or
- Permanent, full-time employees are Section 3 participant(s), or
- Permanent, full-time employees were Section 3 participant(s) anytime, within 3-years of their hire date, or
- Business is awarded a contract (with the HHA) and agrees to subcontract a minimum of 25% of the HHA contract award to a Section 3 Business.
HHA SECTION 3 PROGRAMS & SERVICES
HHA’s Section 3 Program shall increase very-low and low-income individuals’ and businesses’ access and engagement in new opportunities related to jobs, training and/or contracts (construction/non-construction). Ultimately, eligible Section 3 participants (individuals and businesses) will be empowered to pursue economic attainment. The following programs and services will be offered:
- Employment – individuals meeting minimum job requirements will encourage to pursue vacant positions offered by the HHA and/or HHA’s Contractors. Section 3 participants may receive advance employment notices before positions are advertised publicly, along with reporting Section 3 eligibility on the job application(s). While preferences may be offered for marketing and recruitment purposes, Section 3 designation will not guarantee final selection for any jobs with the HHA nor its Contractors.
- Training – individuals who are in need of developing work skills to pursue jobs with HHA or HHA’s Contractors are eligible to pursue assistance from HHA’s Section 3 Program. Eligible training classes shall prepare individuals to obtain a job with the HHA and/or its Contractors, within the same calendar year. Limited Training Assistance will also be available for underemployed individuals to increase job skills to pursue job promotions and/or career changes. HHA’s Section 3 Training assistance will be included but not limited to: customized training arranged by HHA or its Contractors, on-the-job training, or scholarships.
Contracting – individuals who are eligible to be designated as a Section 3 Business Concerns will be provided technical assistance to acquire/meet minimum requirements to pursue contracts offered by the HHA or its Contractors. The goal is to increase Section 3 Business Concerns awareness and access to pursue viable contracts funded directly or indirectly by HHA. HHA’s technical assistance shall include but not limited to hosting Procurement 101 Workshops, Referrals to SBA or Small Business Development Partners, Advanced Notices of HHA’s Solicitations, and limited microenterprise grants. HHA’s contracting assistance must be related to increasing Section 3 Business Concerns desire to pursue contracts funded by the HHA, directly or indirectly.
SECTION 3 PROGRAM GOALS
To the greatest extent feasible, HHA’s Section 3 program will pursue the following goals:
- Target Section 3 individuals to fill at least 30% of HHA its new jobs with eligible applicants
- Award at least 10% of new covered construction contracts to eligible Section 3 Business Concerns
- Award at least 3% of new covered non-construction contracts to Section 3 Business Concerns
ENROLLMENT IN HHA SECTION 3 PROGRAM
The email shall include your Name, Address, Contact Number, Contact Email and Enrollment Interests as a Participant and/or Business Concern. The email should also include an area of interest: job, training and contracting opportunity. A representative will respond to all email inquiries, within 2-business days, to schedule an eligibility assessment which shall include annual household income, residency, participation in federally-funded programs and career/professional goals.