Economic Opportunities for Low and Very Low Income Persons

HUD Compliance and Monitoring?
HUD monitors the performance of recipients and
contractors. HUD examines employment and
contract records for evidence of actions taken to
train and employ Section 3 residents and to award
contracts to Section 3 businesses. HUD provides
technical assistance to recipients and contractors
in order to obtain compliance with Section 3
requirements.

What if it appears that an entity is not
complying with Section 3?
There is a complaint process. Section 3 residents
and business concerns may file complaints if they
think a violation of Section 3 requirements has
occurred where a HUD-funded project is planned
or underway. Complaints will be investigated; if
appropriate, voluntary resolutions will be sought.
There are appeal rights to the Secretary. Section
3 residents and businesses may also seek judicial
relief.

U.S. DEPARTMENT OF
HOUSING AND URBAN
DEVELOPMENT

Section 3
Economic Opportunity
A Piece of the American Dream

How can Section 3 businesses or
residents complain about a violation of
Section 3 requirements?
They can file a complaint in writing to the local HUD FHEO
Office or to:

The Assistant Secretary for Fair Housing
and Equal Opportunity
U.S. Department of Housing and Urban Development
451 Seventh Street, SW, Room 5100
Washington, DC 20410-2000
1-800-669-9777
1-800-927-9276 (TTY)

www.hud.gov www.espanol.hud.gov
A written compliant should contain:
1. Name and address of the person filing the
complaint;
2. Name and address of subject of complaint (HUD recipient
or contractor);
3. Description of acts or omissions in alleged violation of
Section 3;
4. Statement of corrective actions sought.

04736

U.S. Department of Housing
and Urban Development

Fair Housing and Equal
Opportunity

April 2006
HUD-1476-FHEO Rev 2
OMB Approval Number 2529-0043 (exp. 8/31/2007)
Previous Editions are Obsolete

Section 3 Act

Section 3 of the Housing and Urban Development Act of 1968
(12 U.S.C. 1701u) (as amended), requires that economic
opportunities generated by certain HUD financial assistance for
housing (including Public and Indian Housing) and community
development programs shall, to the greatest extent feasible, be
given to low and very low-income persons, particularly those
who are recipients of government assistance for housing, and
to businesses that provide economic opportunities for these
persons.
Other HUD programs covered by Section 3 (to distinguish
between HUD Public and Indian housing programs) are those
that provide housing or community development assistance
for housing rehabilitation, housing construction, or other public
construction project.

Who are Section 3 residents?

Public housing residents including persons with disabilities.
Low and very low income persons who live in the area where
a HUD assisted projected is located.

What types of Economic Opportunities are
available under Section 3?
aJobs and Employment opportunities
aTraining and Educational opportunities
aContracts and Business opportunities

Who will provide the Economic Opportunities?
Recipients of HUD financial assistance and their contractors
and subcontractors are expected to develop a Section 3 Plan
to assure that economic opportunities to the greatest extent
feasible, are provided to low and very low-income persons and
to qualified Section 3 businesses. One element of that Plan
is the use of a Section 3 clause which indicates that all work
performed under the contract are subject to the requirements of
Section 3.

Who receives Economic Opportunities under
Section 3?
For training and employment:
a persons in public and assisted housing;
a persons in the affected project neighborhood;
a participants in HUD Youth-build programs;
a homeless persons.
For contracting:
a businesses which fit the definition of a Section 3 business.

What is a Section 3 business?
A section 3 business is one:
That is owned by Section 3 residents
Employs Section 3 residents or;
Subcontracts with businesses that provide opportunities to
low and very low income persons.

How can individuals and businesses find out
more about Section 3?
Contact the Fair Housing and Equal Opportunity
representative at your nearest HUD Office.