Businesses Section 3 Information

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What is considered a Section 3 business?

To be classified as a Section 3 business, you must qualify in one of the following three ways:

• 51% or more owned by Section 3 residents; or
• Employs Section 3 residents for at least 30% of its full- time, permanent staff; or
• Subcontracts 25 percent of the dollar awarded to qualified Section 3 Business Concerns or Section 3 Residents

Who is considered a Section 3 resident?

A business owner is considered a Section 3 resident if they are:

• a Public Housing resident
• a Public Assistance Recipient
• a Public Assistance Program Participant
• within the Income Limits chart (see below)

• Income Limits - 2022
  Number in Household	1	2	3	4	5	6	7	8
  Maximum Household Income	$ 56,750	$ 64,850	$ 72,950	$ 81,050	$ 87,550	$ 94,050	$ 100,550	$ 107,000

Employment Opportunity Definition

Any job opening arising from SHRA contracts/projects, to include permanent, temporary or seasonal employment opportunities, including management and administrative jobs. Management and administrative jobs include architectural, engineering or related professional services required to prepare plans, drawings, specifications, or work write-ups; and jobs directly related to administrative support of these activities (construction manager, relocation specialist, payroll clerk, etc.)

New Hire Definition

Outlined below are minimum requirements to be met by the contractor and all subcontractors performing work on this project. 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. Specifically, Section 3 of the Housing and Urban Development Act of 1968 and SHRA policy requires, to the greatest extent feasible, that employment and contracting opportunities be provided to Section 3 Residents and Section 3 Businesses.

Contractor & Subcontractor Obligations for Section 3 Compliance

• Demonstrate a good faith effort, to the greatest extent feasible, to utilize eligible/qualified Section 3 area residents as employees and trainees when new hires are needed.
• Identify the number of positions, by classification/function, required to plan and complete the work to be done under the Section 3 covered project, this includes management and administrative personnel.
• Determine how many of these positions are currently filled and which are not filled by regular, permanent employees.

Review the chart below, match your household size (include yourself) with the maximum household income before taking this employment opportunity.

Contractor & Subcontractor Actions to Demonstrate a Good Faith Effort

The awarded contractor and all subcontractors on the Section 3 Covered Contract/Project are required to identify any new hire opportunity resulting from obtaining this contract. Prior to receiving the Notice to Proceed, the awarded contractor and all subcontractors shall provide to SHRA Procurement Services a complete Employee Roster and a completed/signed Section 3 Economic Opportunity Plan. If the awarded contractor and/or his subcontractors do not anticipate hiring anyone as a result of the contract, complete the bottom section of the form: “Notification of the Intent to Use Current Workforce.”