Section 3

Section 3 is a provision of the Housing and Urban Development Act of 1968. The purpose of Section 3 is to ensure that employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, and consistent with existing Federal, State, and local laws and regulations, be directed to low- and very low-income persons, particularly those who are
recipients of government assistance for housing, and to business concerns which provide economic opportunities to low- and very low-income persons.

The City of Rochester, as a recipient of HUD funds, seeks to establish and enforce Section 3 compliance through a number of different approaches. This includes but is not limited to preference being given to Section 3 businesses for HUD-assisted projects, coordination with the Rochester Housing Authority to ensure its residents have knowledge of and access to employment opportunities related to HUD-assisted projects, and continual review of best practices for Section 3 compliance.

The City encourages all businesses that believe they may qualify as Section 3 businesses to register with the national Section 3 Business Registry. The Registry provides a helpful guide as to what requirements must be met to establish that a business is a Section 3 business:

  1. Is at least 51% of your business owned and controlled by low-income persons? OR
  2. Is at least 51% owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing? OR
  3. Were over 75% of the labor hours performed for the business over the prior three-month period worked by Section 3 workers?

Interested and qualified businesses may also, instead of registering online, submit the Section 3 Business Self-Certification Form when bidding on Federally-funded city projects. Such projects will note in the bid invitation if there is a Section 3 hiring preference.

More information on Section 3 and the latest updates on Section 3 regulations and policies are available on HUD's Section 3 webpage.