Section 3 Requirements for Contractors (Construction and Non-Construction)

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 most contracts that will be paid using HUD funds include commitments to provide low-income individuals with a springboard for economic empowerment through direct participation in construction and most other activities funded by HUD. Section 3 requirements apply to all contract awards from public housing authorities, other than contracts for materials and supplies.

HUD considers public housing authorities to be in compliance with Section 3 if they and their contractors and subcontractors (for contracts other than for materials and supplies) meet the following minimum numerical goals for hiring and subcontracting:

A. Hiring Requirements
30% of the aggregate number of any new hires for purposes of fulfilling any covered contract with PHA shall be Section 3 qualified individuals.; and

B. Subcontracting Requirements
1. Construction-type contracts: 10% of the total dollar amount of all covered construction contracts shall be awarded to Section 3 business concerns; and
2. Non-construction contracts:  3% of the total dollar amount of all covered non-construction contracts shall be awarded to Section 3 business concerns.

C.  If A. and B. Are Demonstrably Not Feasible
If a contractor or subcontractor can demonstrate that with respect to any contract subject to Section 3, it has no need or plan to subcontract or hire, or that it has attempted, to the maximum extent feasible, to meet Section 3 hiring and subcontracting goals, but has been unable to meet those goals, the contractor may substitute other economic opportunities. Often provision of such opportunities consists of a contribution to a PHA scholarship fund.

Section 3 Compliance Reporting System

Contractors and vendors that have contracts with PHA are required to file Section 3 compliance reports on a quarterly basis throughout the calendar year. To file a compliance report and access the system, please select the link below.  A list of the information needed for the report can be found here.  If there are any questions, please contact the Section 3 Department at (215) 684-4318,


Contractors / Vendors
Section 3_Vendor _Portal _image

Click here to submit your Section 3 Compliance Report


Click Here to watch the 'how to' videos on completing your Section 3 Compliance Report.

Documents and Resources

PHA Section 3 Department
712 N. 16th Street
Philadelphia, PA 19130
(215) 684-4318