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 or business concerns residing in the community where the project is located. 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 Resident is a person that meets one of the following criteria:
- Person is a public housing resident; or
- Person whose household income is 80% or less of Area Median Income (AMI). Table below provides the 2020 Section 3 household income limits.
|Persons in Household||1||2||3||4||5||6||7||8|
|80% AMI (gross income)||$51,000||$58,250||$65,550||$72,800||$78,650||$84,450||$90,300||$96,100|
Section 3 Business Concern is a business that meets one of the following criteria:
- Business is majority (51%) owned by low-income Section 3 individual; or
- 30% of permanent full-time employees are low-income Section 3 individuals; or
- Business subcontracts 25% of their award amount to Section 3 business concerns.
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). Any subgrantee/developer, contractor and/or subcontractor receiving more than $100,000 contract is subject to Section 3.
Any tier contracting for $100,000 or less is 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:
- Thirty percent (30%) of the aggregate number of new hires to be Section 3 residents.
- Ten percent (10%) of total dollar amount of all Section 3 covered capital contracts to be awarded to Section 3 businesses.
- Three percent (3%) of total dollar amount of all Section 3 covered non-construction contracts to be awarded to Section 3 businesses.
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 these lists.
Section 3 Forms
DuPage County CDC staff has prepared the following forms to aid in certification of business concerns and individuals as Section 3. Below are the fillable PDF files that allow you to save your changes before printing. You may download the complete packet, or each form individually as applicable.
Fillable Packet for contractors:
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 firstname.lastname@example.org or phone/fax: 630-407-6600 / 630-407-6601.
Mailing address:DuPage Community Development Commission
421 N. County Farm Road, Room 2-800
Wheaton, IL 60187
Page Last Updated 10/29/2020