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
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
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, firstname.lastname@example.org.
|Contractors / Vendors
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