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Section 3 Requirements

Section 3 Frequently Asked Questions
What is Section 3?

Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 which ensures 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.

The City of Edinburg is committed to promoting employment, contracting, and training opportunities to low and very low income individuals and to business concerns who employ such individuals

Which City of Edinburg projects are subject to Section 3 requirements?

Section 3 projects include housing rehabilitation, housing  construction and other public construction (infrastructure,  public facilities, park improvements etc.) assisted under the  Community Development Block Grant Program (CDBG) when the total funding amount exceeds $200,000.
What is a Section 3 business concern?

A Section 3 Business Concern is a business that meets at least  one of the following criteria, documented within the last 6 months:

  1. At least 51% owned and controlled by low or very low income persons; or
  2. Over 75% of the labor hours performed for the business over the prior 3-month period were performed by Section 3 workers; or
  3. A business at least 51% owned and controlled by current public housing residents or residents who currently live in Section 8 assisted housing.
Who is a low income person?

To determine if a person is considered low-income, please refer to the HUD Individual Income Limits included in the attached Section 3 Eligibility Guidelines.
Who is a Section 3 worker?

A Section 3 worker is any worker who currently meets, or when hired within the past 5 years met, at least one of the following categories:

  1. The worker’s income for the previous or annualized calendar year is below the income limit established by HUD; or
  2. The worker is employed by a Section 3 Business Concern; or
  3. The worker is a YouthBuild Participant.
Who is a "Targeted Section 3 Worker"?

A Section 3 worker is any worker who currently meets, or when hired within the past 5 years met, at least one of the following categories:

  1. The worker is employed by a Section 3 Business Concern; or
  2. Currently meets or when hired met, at least one of the following, documented within the past 5 years:
    • Living in the service area or the neighborhood of the project, as defined in 24 CFR Part 75.5; or
    • Is a YouthBuild Participant.