Section 3 Opportunities

Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) (as amended), requires that economic opportunities generated by certain HUD financial assistance for housing (including Public and Indian Housing) and community development programs shall, to the greatest extent feasible, be given to low and very low-income persons, particularly those who are recipients of government assistance for housing, and to businesses that provide economic opportunities for these persons.

Other HUD programs covered by Section 3 (to distinguish between HUD Public and Indian housing programs) are those that provide housing or community development assistance for housing rehabilitation, housing construction, or other public construction project.


  • Public housing residents including persons with disabilities.
  • Low and very low income persons who live in the area where a HUD assisted project is located.


A Section 3 business is one:

  • That is owned by Section 3 residents
  • Employs Section 3 residents
  • Subcontracts with businesses that provide opportunities to low and very low income persons

What types of Economic Opportunities are available under Section 3?

  • Jobs and employment opportunities
  • Training and educational opportunities
  • Contacts and business opportunities

Who will provide the Economic Opportunities?

  • Recipients of HUD financial assistance and their contractors and subcontractors are expected to develop a Section 3 Plan to assure that economic opportunities to the greatest extent feasible, are provided to low and very low-income persons and to qualified Section 3 businesses. One element of that Plan is the use of a Section 3 clause which indicates that all work performed under the contract are subject to the requirements of Section 3.

Who receives Economic Opportunities under Section 3?

For training and employment:

  • Persons in public and assisted housing
  • Persons in the affected project neighborhood
  • Participants in HUD Youth-build programs
  • Homeless persons

For contracting:

  • Businesses which fit the definition of a Section 3 business

How can individuals and businesses find out more about Section 3?

Contact the Alexandria Redevelopment and Housing Authority Human Resources Office