Section 3 Business Resources

What is a Section 3 Business Concern?

A Section 3 Business Concern means:

A business concern meeting at least one of the following criteria, documented within the last six-month period:

  1. It is at least 51 percent owned and controlled by low- or very low-income persons;
  2. Over 75 percent of the labor hours performed for the business over the prior three month period are performed by Section 3 workers;
  3. Or It is a business at least 51 percent owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing.

Section 3 Business Registry

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 75. 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 HACLA certified Section 3 businesses, click here

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

How to register as a Section 3 Business

Complete the Section 3 Business Certification Form and email it to section3@hacla.org

Commitments and Compliance

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 Policy and Compliance Plan by providing economic opportunities to Section 3 Beneficiaries.

Contractors awarded a Section 3 Covered Contract and their subcontractors, if feasible, to prepare and submit 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

Vendors who commit to hiring Section 3 Workers 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. 

Upon hiring Section 3 Workers, vendors are required to submit Section 3 Worker Certification Form to HACLA’s Section 3 Compliance Administrator.

Other Economic Opportunity Commitments

Contractors who commit to providing other economic opportunities, such as trainings, scholarships, 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.

Examples of Other Economic Opportunities

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
  • Apprenticeship Enrollments
  • Certification Programs
  • Internships
  • Scholarships

See 24 CFR Part 75.5 and 75.25 for additional list of qualitative efforts.

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

 

Section 3 Compliance

 Vendors who perform work on Section 3 covered projects for the Housing Authority are monitored for compliance. Section 3 Compliance Report form is required to be submitted at completion of work or annually if work is ongoing to demonstrate good faith efforts and identify if benchmark goals are met. The Section 3 Compliance Report form provides detailed instructions on requirements and support documents to be attached.

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

HUD Opportunity Portal

HUD's Opportunity Portal helps match Section 3 Workers to jobs and Section 3 Businesses to contracting opportunities. You are encouraged to use the portal to demonstrate your good faith efforts to comply with Section 3 requirements by posting jobs and subcontracting opportunities on the portal. HUD Opportunity Portal is available at https://hudapps.hud.gov/OpportunityPortal/