Section 3 of the Housing and Urban Development Act of 1968

Some Frequently Asked Questions (FAQ's)

1. What is Section 3?
Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 that helps foster local economic development, neighborhood economic improvement, and individual self-sufficiency. The Section 3 program requires that the Sacramento Housing and Redevelopment Agency (SHRA), to the greatest extent feasible, cause its contractor/subcontractor and others receiving funding from the SHRA to provide job training, employment, and contracting opportunities for low- or very-low income residents in connection with projects and activities in their neighborhoods. The SHRA and its contractors and subcontractors are required to provide, to the greatest extent feasible, economic opportunities consistent with existing Federal, State, and local laws and regulations.
2. What does the term "Section 3 resident" mean?
A "Section 3 resident" is: 1) a public housing resident; or 2) a low or very-low income person residing in the metropolitan or non-metropolitan county where the Section 3 covered project is being performed.
3. Are all public housing residents considered Section 3 residents regardless of their income?
Yes, public housing residents need only to show proof of residency in public housing within the metropolitan area (or non-metropolitan county). Other residents of the Section 3 area may need to show proof of residency in the metropolitan area (or non-metropolitan county) and meet the HUD income requirements.
4. What is Section 3 covered assistance?
Section 3 covered assistance includes:
• Public Housing Operating Subsidy: Capital Funds; or Modernization assistance; and
• Housing and community development assistance expended for housing rehabilitation, housing construction, or other public construction.
5. What is a Section 3 covered project?
A Section 3 covered project involves the projects such as the construction or rehabilitation of housing or other public construction such as street repair, sewage line repair or installation, updates to building facades, etc.
6. Does Section 3 require recipient agencies to create new training, employment and contracting opportunities?
Recipient agencies (like SHRA) are not required to create jobs or contracts for Section 3 residents and business concerns simply for the sake of creating them. Section 3 requires that when employment or contracting opportunities are generated because a project or activity undertaken by a recipient of covered HUD financial assistance necessitates the employment of additional personnel through individual hiring or the awarding of contracts, the recipient must give preference in hiring to low and very low income persons and/or businesses that are owned by these persons or that substantially employ them.
7. Are Section 3 residents or business concerns guaranteed employment or contracting opportunities under Section 3?
Section 3 is not an entitlement program, there are no guarantees. Residents and businesses must be able to demonstrate that they have the ability or capacity to perform the specific job or successfully complete the contract that they are seeking. Section 3 requirements provide preference to Section 3 residents and business concerns, but not guarantees.
8. How can persons find Section 3 construction job opportunities?
• Individuals can create an account and upload their resumes on line after creating an account on the SPEARS – Opportunity Portal – Resident. Once you have an account, you can search for possible job opportunities and keep your resume current. Contractors can also search for new hires through this portal.
• By keeping your information and resume current with the SHRA Section 3 coordinator by emailing to: Section3@shra.org. We are frequently contacted by contractors who are looking to fill open positions.

SPEARS – Opportunity Portal – Resident





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