Section 3 Requirements for Contractors / Vendors

PHA is committed to providing quality housing and economic opportunities for our residents and the neighborhoods we serve. One of the major vehicles for this is Section 3 of the HUD Act of 1968, which requires that HUD funds provide low-income individuals with a springboard for economic empowerment through direct participation in construction and other activities that are designed to physically improve and revitalize the communities in which they live.

HUD considers public housing authorities to be in compliance with Section 3 if they meet the following minimum numerical goals:

A. 30% of the aggregate number of new hires shall be Section 3 residents;

B. 10% of the total dollar amount of all covered construction contracts shall be awarded to Section 3 business concerns; and

C. 3% of the total dollar amount of all covered non-construction contracts shall be awarded to Section 3 business concerns.

Section 3 requirements apply to all contractors and vendors who receive awards from public housing authorities.

Documents and Resources