Section 3 FAQ
2. Very-low income is defined as 50% or below the median income of a given area.
2. Persons who live in an area where a HUD-assisted project is located and who have a household income that falls below HUD’s Income limits.
- Is 51% or more owned by Section 3 residents;
- Employs Section 3 residents for at least 30% of its full-time, permanent staff; or
- Provides evidence of a commitment to subcontract, to Section 3 Business Concerns, 25% or more of the dollar amount of the awarded contract.
Section 3 resident:
- Lease for a property owned by a housing commission;
- Most current tax return demonstrating that his/her income is at or below 80% of the area median income or;
- Determination from the Department of Health Services:
- Confirmation of Medicare or Medicaid for themselves or their children;
- Evidence of food assistance;
- Copy of Section 8 Voucher; or
- Evidence of cash assistance from DHS
Section 3 business concern:
- Copy of the payroll and applicable Section 3 resident documentation; or
- Written commitment and supporting documentation from subcontractors.
- For training and employment: Persons in public or assisted housing; persons in the area where the HUD financial assistance is spent; participants in HUD Youthbuild programs; and homeless persons.
- For contracting: Businesses that meet the definition of a Section 3 Business Concern.
A written compliant can be filed with the local HUD field office, and should include the following: name and address of person filing the complaint; the name and address of the subject of the complaint (HUD recipient, contractor or subcontractor); description of the acts or omissions in alleged violation of Section 3; and statement of corrective action sought, e.g. training, employment, or contracts.