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 toward 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 is part of
the Housing and Urban Development Act of 1968, as amended by Section 915 of the
Housing and Community Development Act of 1992.
Section 3 Worker Means:
(1) Any worker
who currently fits or when hired within the past five years fit at least one of
the following categories, as documented:
(i) The worker's income for the previous
or annualized calendar year is below the income limit established by HUD. The below table provides Section 3 household
income limits, which are updated by HUD from time to time.
The worker is employed by a Section 3 business concern.
The worker is a YouthBuild participant.
(2) The status
of a Section 3 worker shall not be negatively affected by a prior arrest or
(3) Nothing in
this part shall be construed to require the employment of someone who meets
this definition of a Section 3 worker. Section 3 workers are not exempt from
meeting the qualifications of the position to be filled.
|Persons in Household||1||2||3||4||5||6||7||8|
|80% AMI (gross income)||$52,500||$59,650||$67,100||$74,550||$80,550||$86,500||$92,450||$98,450|
Section 3 Worker Means:
Section 3 worker for housing and community development financial assistance
means a Section 3 worker who is:
A worker employed by a Section 3 business concern; or
A worker who currently fits or when hired fit at least one of the following
categories, as documented within the past five years:
Living within the service area or the neighborhood of the project, as defined
in § 75.5; or
A YouthBuild participant.
Section 3 Business Concern Means:
A business concern meeting at least one of the following criteria, documented
within the last six-month period:
It is at least 51 percent owned and controlled by low- or very low-income
Over 75 percent of the labor hours performed for the business over the prior
three-month period are performed by Section 3 workers; or
It is a business at least 51 percent owned and controlled by current public
housing residents or residents who currently live in
The status of a Section 3 business concern shall not be negatively affected by
a prior arrest or conviction of its owner(s) or employees.
Nothing in this part shall be construed to require the contracting or
subcontracting of a Section 3 business concern. Section 3 business concerns are
not exempt from meeting the specifications of the contract.
Who is subject to Section 3?
Section 3 requirements apply to construction and
rehabilitation projects that receive HUD funding through the DuPage County Community
Development Commission (CDC) when the total amount of assistance to the project
exceeds a threshold of $200,000. Any subgrantee/developer, contractor
and/or subcontractor working on the HUD assisted project is subject to Section
Contractors working on projects receiving $200,000 or less are
not responsible for complying with Section 3; however, it is encouraged that
any contractor or new hire which qualifies as Section 3 be documented and
reported to meet the numerical objectives as a whole.
What are Section 3 Requirements?
To the greatest extend feasible all subgrantees/developers,
contractors and subcontractors working on Section 3 covered projects must
document their efforts to meet the following numerical Section 3 goals:
percent (25%) or more of the total number of labor hours worked by all
workers on a Section 3 project are Section 3 works. Section 3 Labor Hours / Total Labor
Hours = 25%.
percent (5%) or more of the total number of labor hours worked by all
workers on a Section 3 project are Targeted Section 3 workers. Targeted Section 3 Labor Hours / Total
Labor Hours = 5%.
Section 3 Certification
Why should an individual or business become certified as
Section 3? The DuPage County Community Development Commission
(CDC) maintains lists of certified Section 3 individuals and certified Section
3 businesses. Any entity receiving federal funding through CDC for a
construction project will be required to solicit bids and/or new hires from
Section 3 Forms
DuPage County CDC staff has prepared the following
forms to aid in certification of business concerns and workers as Section 3.
Below are the fillable PDF files that allow you to save your changes before
printing. You may download each form individually as applicable.
Fillable Packet for contractors effective 07/2021:
Upon completion please return the forms to CDC office via mail, fax or email. If you have any additional questions about Section 3 please email email@example.com or phone/fax: 630-407-6600 / 630-407-6601.
DuPage Community Development Commission
421 N. County Farm Road, Room 2-800
Wheaton, IL 60187
Section 3 Business Registry
The Section 3 Business Registry is a registry of businesses
that have self-certified their status as Section 3 Businesses. Businesses who
self-certify that they meet one of the regulatory definitions of a Section 3
business will be included in a searchable online database. The database can be
used by agencies that receive HUD funds, developers, contractors, and others to
facilitate the award of covered construction and non-construction contracts to
Section 3 businesses. Section 3 residents are also encouraged to use the
registry to identify businesses that may have HUD-funded employment
The DuPage County Community Development Commission requires
notice of bid opportunities be sent directly to any appropriate contractor
identified on the Section 3 Business Registry for projects partially assisted
with federal funds allocated to DuPage County through the U.S. Department of
Housing & Urban Development. A link to HUD’s Section 3 Business
Registry for the Chicago-Joliet-Naperville, IL HUD Metro Metropolitan Area can
be found here: Section 3 Business Registry
Section 3 Outreach Efforts
In addition to
the contractor documentation that has been developed, CDC staff have created
additional educational material pertaining to Section 3. Please review the below for additional
Initiative Overview (PDF)
Employee Resources (PDF)
Employer Outreach (PDF)
Jobsite Posting (PDF)
Section 3 Employer Notification (PDF)
Page Last Updated 08/13/2021