Section 3
Section 3 is a provision of the federal Housing and Urban Development Act of 1968 that helps foster local economic development, job opportunities and self-sufficiency. The Section 3 program ensures that “to the greatest extent feasible,” economic opportunities generated by certain HUD financial assistance be prioritized for low-income individuals and businesses. The program is implemented and regulated by Part 75 of Title 24 of the Code of Federal Regulations.
As a recipient of HUD Community Development Block Grant (CDBG) - Disaster Recovery and CDBG - Mitigation funding, the N.C. Office of Recovery and Resiliency has a responsibility to ensure that all HUD-funded projects maximize community benefits and economic opportunities for low-income individuals and households.
Section 3 Requirements
NCORR subrecipients, contractors and subcontractors working on Section 3-covered contracts or projects must make their best efforts to provide employment and training opportunities to Section 3 workers. These job opportunities may include professional, technical, construction, maintenance and administrative work.
An individual who is certified as a Section 3 Worker certified is placed on a registry and notified of employment and training opportunities.
NCORR helps eligible businesses obtain contracting opportunities on HUD Section 3-covered contracts and projects. To be eligible, the business must:
- Be at least 51% owned and controlled by low-income individuals; or
- Have Section 3 workers perform over 75% of the business’s labor hours over a three-month period; or
- Be at least 51% owned and controlled by current public housing residents or Section 8 residents.
A business that is Section 3 Business Concern certified is placed on a registry and notified of contracting opportunities, business development workshops and conferences and referrals to businesses under Section 3 Contract Compliance.
To meet HUD benchmarks, NCORR subrecipients, developers, contractors and subcontractors working on NCORR Section 3 covered contracts and projects must make a documented effort to award contracts and subcontracts to qualified Section 3 Business Concerns and hire qualified Section 3 workers.
For assistance in identifying certified Section 3 workers and Section 3 businesses, please email Section3@rebuild.nc.gov.
Section 3 Outreach
NCORR is partnering with United Bank to host a series of financial literacy webinars for Section 3 workers and business owners.
Insights on Financial Recovery and Buying a Home
Join us on Wednesday, Dec. 4 at 1 p.m. for a webinar to gain essential information to support your short-term and long-term financial goals. Representatives from United Bank will cover the aspects of buying a home and recovering from a financial setback. Register to attend.
| English | Español |
|---|---|
| Webinar Event Flyer (PDF) | Folleto del seminario web |
The Section 3 Policy Manual outlines how NCORR and its subrecipients, contractors and subcontractors will comply with Section 3 requirements while implementing NCORR’s HUD-funded programs. Additional information about Section 3 is also available on the HUD Exchange.
| Section 3 Resources |
|---|
| NCORR Policy Manual |
| Policy and Procedures: Section 3 Policy |
| Política y Procedimientos: Política de la Sección 3 |
| NCORR Section 3 Factsheet |
| Section 3 Economic Opportunities Factsheet |
| Hoja informativa sobre oportunidades económicas de la Sección 3 |
| NCORR Section 3 Flyer |
| Flyer: Work With Us |
| Folleto: Trabaja con nosotros |
| Additional HUD Resources |
| HUD Exchange: Section 3 |
| HUD Section 3 FAQs |