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Housing - Section 3

What is the purpose of Section 3?
As a provision of the Housing and Urban Development (HUD) 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 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.”

Section 3 requirements are triggered when HUD-sourced assistance is expended for housing rehabilitation, housing constructions or other public construction projects that are equal to or greater than $200,000 and subcontracts of such projects in the amount of $100,000 or more.
What is a Section 3 resident?
1.      A public housing resident; or
2.      A low- or very low-income person residing in the metropolitan area or non-metropolitan county where the Section 3 covered assistance is expended. (24 CFR §135.5)
What is a Section 3 business concern?
A business concern:
1.      That is 51 percent or more owned by Section 3 residents; or
2.      Whose permanent, full-time employees include persons, at least 30 percent of whom are currently Section 3 residents, or within three years of the date of first employment with the business concern were Section 3 residents; or that provides evidence of a commitment to subcontract in excess of 25 percent of the dollar award of all subcontracts to be awarded to business concerns that meet the qualifications set forth in paragraphs (1) or (2) in this definition of “Section 3 business concern.”

Who is Waller County’s Section 3 Coordinator?
The County of Waller has appointed the County Judge as the Section 3 Coordinator. The coordinator will maintain records of certified Section 3 residents and business concerns through the GLO’s master list and certifications turned in by local residents and business owners. As a recipient of HUD’s Disaster Recovery CDBG funds, The County of Waller is required to submit (1) complete updated Quarterly Report Forms and (2) Section 3 Annual Summary Report to the GLO for the County’s non-housing activities.

The Section 3 Coordinator will monitor contractors and subcontractors by reviewing all reporting documents and ensuring the documents are received in a timely manner. These reports will in turn be given to the GLO and HUD as required. The reporting documents include:

  • Contractor Certification of Efforts to Fully Comply (included in bid packet)
  • New Hires Section 3 Monthly Compliance Report (included in bid packet)

Section 3 Certifications for Business Concerns (optional-can be found on website or County Judge’s Office)

To determine whether you are a Section 3 resident, or are employing Section 3 residents, please refer to HUD’s Income Limit Documentation.
For more information on Section 3, please read Waller County’s Section 3 Plan.
For certification to be considered a Section 3 resident or business concern, please see the following forms:

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