About Section 3 Information
What is Section 3?
Section 3 of the Housing and Urban Development (HUD) Act of 1968 requires the Sacramento Housing and Redevelopment Agency (SHRA) to ensure that employment, recruitment, and training are directed to public housing residents and other low-income persons, to the greatest extent feasible, particularly recipients of government housing assistance, and business concerns that provide economic opportunities to low- and very low-income persons (Section 3 Residents).
Outlined below are minimum requirements to be met by businesses performing work with SHRA. The minimum requirements are triggered by federal regulations and SHRA policy and require active involvement by the contractor and subcontractors in soliciting local employees and contractors. SHRA policy requires, to the greatest extent feasible, that employment and contracting opportunities be provided to Section 3 Residents and Section 3 Businesses.
Section 3 Employment Goals Who Must Comply Area of Focus Goal Contractors New Hires and Trainees 30% of new hires Any Tier Subcontractors New Hires and Trainees 30% of new hires Professional Service Contracts New Hires and Trainees 30% of new hires
Section 3 Sub-Contracting Goals Who Must Comply Area of Focus Goal Building trades work for maintenance, repair, modernization or development of public or Indian housing, or for building trades work arising in connection with housing rehabilitation, housing construction and other public construction. Subcontract Awards At least 10 percent of the total dollar amount of all contracts Any Tier Subcontractors Subcontract Awards At least 10 percent of the total dollar amount of all contracts All other Section 3 covered contracts
(professional service contracts)
At least three (3) percent of the total dollar amount of all contracts