Section 3 Business Concerns are businesses that can provide evidence that they meet one of the following criteria:
  1. 51 percent or more of the business is owned by Section 3 Residents; or
  2. At least 30 percent of its permanent full time employees include persons that are currently Section 3 Residents, or were Section 3 Residents within three years of the date of first hire; or
  3. A business that notes a commitment to subcontract in excess of 25 percent of the dollar award of all subcontracts to business concerns that meet one of the first two qualifications above.

HACLA has developed a Section 3 Business Registry, which is a database of businesses that have self-certified that they meet one of the eligibility criteria of a Section 3 Business Concern in accordance with 24 CFR Part 135. HACLA uses its Section 3 Business Registry as a resource to contract with Section 3 Businesses and refer them to prime contractors for subcontracting opportunities. We continuously update the Registry and make it available to the public for the benefit of all. Any referral or contract obtained from the Registry does not constitute or imply an endorsement by HACLA or its representatives. Neither HACLA, nor any of its employees, makes any warranty, express or implied, including qualifications, fitness to complete particular job, or assumes any legal liability for the accuracy, completeness, or usefulness of any information contained in the Registry. 

To view the current listing of businesses, click here: HACLA Section 3 Business Registry.

Additional Section 3 Business listings are also available from the Housing and Urban Development (HUD) Agency website. To view the HUD listings, click here: HUD Section 3 Business Registry


If your business qualifies as a Section 3 Business Concern, follow the steps below to complete your certification process.

Step 1: Download and fill out the Form-2 Section 3 Business Certification Form.

Step 2: Submit the completed form and supporting documents as applicable to Section 3 Compliance Administrator via email at section3@hacla.org. 

Step 3: We will confirm receipt of your certification and add your name to the Section 3 Registry.

HACLA has adopted a bid preference for Section 3 Business Concerns when awarding Section 3 Covered Contracts using the Invitation for Bids (IFB) method of solicitation for services and for construction and maintenance activities. The bid preference requires that the IFB be awarded to the qualified Section 3 Business Concern with the highest priority ranking and with the lowest responsive bid if the bid meets certain criteria. In addition, when you register as a Section 3 Business Concern, your business name is added to our database and you are notified of contracting opportunities with HACLA and with its prime contractors for subcontracting opportunities.
Bid Preference Table
When the lowest responsive bid is: Section 3 Business Concern bid is within lesser of:
Less than $100,000: 10% of that bid or $9000
At least $100,000, but less than $200,000 9% of that bid, or $16,000
At least $200,000, but less than $300,000 8% of that bid, or $21,000
At least $300,000, but less than $400,000 7% of that bid, or $24,000
At least $400,000, but less than $500,000 6% of that bid, or $25,000
At least $500,000, but less than 1 million 5% of that bid, or $40,000
At least $1milion, but less than $2 million 4% of that bid, or $60,000
At least $2 million, but less than $4 million 3% of that bid, or $80,000
At least $4 million, but less than $7 million 2% of that bid, or $105,000
$7 million or more 1½% of the lowest responsive bid, with no dollar limit
Section 3 Applicability

It is the intent and policy of the Housing Authority of the City of Los Angeles (“HACLA”) to fully comply with Section 3 and to require its Contractors undertaking contracts to which Section 3 applies to demonstrate good faith effort to comply, to the greatest extent feasible, with Section 3 and the responsibilities described under the Section 3 Guide and Compliance Plan by providing economic opportunities to Section 3 Beneficiaries.

 

Contractors awarded a Section 3 Covered Contract and their Subcontractors prepare and submit an Economic Opportunity Plan (EOP). The plan outlines the contractor’s and its subcontractor’s commitments to generate economic opportunities in compliance with Section 3. The EOP is incorporated into the contract and contractors are monitored for compliance.

 

Job Commitments

Contractors who commit to hiring Section 3 Residents are required to submit HACLA their job specification and requirements as soon as possible. We strongly encourage contractors to use the Job Order form or provide HACLA their job bulletin listing qualifications, start date, work schedule, pay, and other relevant information. HACLA’s WorkSource Development team assists contractors and their subcontractors to conduct outreach and recruit qualified candidates for the open positions. At least 48 hours prior to hiring Section 3 Residents, the contractors/subcontractors are required to submit HACLA within 3 business days Form 3: Section 3 Resident Certification Form. The form should be emailed to section3@hacla.org.

 

Other Economic Opportunity Commitments

Contractors who commit to providing other economic opportunities, such as trainings, scholarships, internships, apprenticeships, etc. work with the Section 3 Compliance Administrator to create a proposal. Following the approval of the proposal and contract execution, the Section 3 team works with the contractors to execute the proposal.

 

Section 3 Compliance

Contractors and their subcontractors who perform Section 3 covered projects for the Housing Authority are monitored for compliance. Upon request, they are required to submit Form 5: Section 3 Compliance Summary Report, and other applicable forms in addition to documentation showing their Section 3 efforts. Section 3 Resident Certification Forms for all Section 3 new hires should be attached to the Section 3 Compliance Summary Report. Failure on part of the contractor or any of its subcontractors to meet the commitments set forth in contractor’s EOP may result in a determination that the contractor is in material default of the contract.

The forms referenced here are available in fillable PDF format at Forms, Documents and Policies page.

 

The list below illustrates economic opportunities offered by HACLA contractors who were unable to make hiring or subcontracting commitments. The list is not intended to be exclusive or exhaustive and is provided to contractors for the purpose of helping them develop their own economic opportunities for Section 3 Residents. 

 

Law firms, material only, information technology, professional service providers and out of state contractors have provided the following:

  • Maintenance and labor related trainings
  • Career Workshops
  • Mentorship Programs
  • Certification Programs
  • Internships
  • Scholarships
  • College Preparation Help
  • Section 3 Fund Contribution (as an option of last resort)

 

Jordan Downs Redevelopment Phase 1A is being developed by Bridge Housing Corporation who has selected Cannon Constructors as its General Contractor. Both the Developer and the General Contractor have Section 3 requirements. Cannon Constructors has hired PDA Consulting Group to help them fulfill their Section 3 obligations.

Section 3 Businesses interested in subcontracting opportunities during this phase are encouraged to connect with PDA Consulting Group.

Pamela V. Penn, President

110 La Brea Ave, Suite 420, Inglewood, CA 90301

Tel: 310-680-3740

Email: Pamela.Penn@pdaconsultinggroup.com

or Tatiana Campbell

Tel: 310-946-8525

Email: Tatiana.Campbell@pdaconsultinggroup.com

 

 

Questions about the Section 3 program can be directed the Section 3 Compliance Administrator via e-mail at section3@hacla.org.

Meet Our Section 3 Residents
  • It’s a great program! It gives residents the opportunity to be able to succeed in life. I feel now that I can not only sustain myself, but more importantly provide for my family.

    Abraham Acevedo ArandaWest Coast Arborists
  • I’m glad that there are programs like Section 3 to motivate and give residents hope. Sometimes, all we need is a chance that could change our lives forever. I can’t thank KDG, HACLA and its Section 3 Program enough. It sure has changed my life for the better!

    Rosalina AguilarKDG Consulting
  • My kids are looking up to me and I want to do something positive for myself and for them. I want them to see the good things in life as they grow up. You won’t get anywhere unless you take action and control of your life.

    Miriam PrinceCypress Security Inc.
  • My daughter is my motivation. I want to be a good example for her. The fact that the Housing Authority brings all types of resources to residents right in front of my door is very helpful for me.

    Chaunthia MahoneBest Choice Plumbing
  • I can learn something new every day. Why would I slow down? As an ex-military man I am used to being active to keep me going.

    Robert LoweLetner Roofing and Best Choice Plumbing
  • I never even imagined that I can do this kind of work. I thought it is for people with an advanced education.

    Jacqueline JonesAndersen Environmental
  • I want to leave a mark and be a role model for my siblings and the community. Instead of hanging out with friends all day long, youth should think about their future.

    Dwight ThomasGartner Inc. Workshop
  • This job changed my life in so many ways. I am thankful to both York and HACLA’s Section 3 Program for this opportunity. This gave me confidence that I am capable and can have a career.

    Dalia Leon Gomez
  • Hopefully I will save enough money in the near future and afford to buy a house. I want to make the subsidized unit available to others in need. Maybe another single mother can have a chance to better her life with this assistance.

    Sonia Rodriquez