Section 3 Definitions and Resources

Home Contracts and Procurement Section 3 and MBE/WBE Section 3 Definitions and Resources

 Section 3 Definitions and Resources

 

Definitions:

Section 3 Worker 

Section 3 Worker means;

Any worker who currently fits or when hired within the past five years fit at least one of the following categories, as documented:

  1. The worker’s income for the previous or annualized calendar year is below the income limit established by HUD.
  2. The worker is employed by a Section 3 business concern.
  3. The worker is a YouthBuild participant.
     
Targeted Section 3 Worker

The definition of a Targeted Section 3 Worker is different based on the source of HUD funding:

Targeted Section 3 Worker for Public Housing Financial Assistance means a Section 3 Worker as defined in 24 CFR Part 75.11, as may be amended from time to time, and means a worker documented through self-certification or other means acceptable to HUD, who is:

  • A worker employed by a Section 3 Business Concern; or
  • A worker who currently fits or when hired fit at least one of the following categories, as documented within the past five years:
    • A resident of public housing or Section 8-assisted housing;
    • A resident of other public housing projects or Section 8-assisted housing managed by the PHA that is providing the assistance; or
    • A YouthBuild participant.

Targeted Section 3 Worker for Housing and Community Development Financial Assistance means a Section 3 Worker as defined in 24 CFR Part 75.21, as may be amended from time to time, and means a worker documented through self-certification or other means acceptable to HUD, who is:

  • A worker employed by a Section 3 Business Concern; or
  • A worker who currently fits or when hired fit at least one of the following categories, as documented within the past five years:
    • Living within the service area or the neighborhood of the project, as defined in § 75.5; or
    • A YouthBuild participant.
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:

  • It is at least 51 percent owned and controlled by low- or very low-income persons;
  • Over 75 percent of the labor hours performed for the business over the prior three month period are performed by Section 3 workers;
  • 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.
Income Eligibility Guideline (FY 2022 Los Angeles County HUD Income Limits)

Income Eligibility Guideline (FY 2022 Los Angeles County HUD Income Limits) is available here.
 

 

Benchmark Goals and Hiring Commitments: 

HUD Labor Hour Benchmarks

HUD established Section 3 benchmarks for Section 3 workers and Targeted Section 3 Workers. The benchmarks consist of the following two ratios:

  1. Twenty-five (25) percent or more of the total number of labor hours worked by all workers in the recipient’s fiscal year are Section 3 workers; and
  2. Five (5) percent or more of the total number of labor hours worked by all workers in recipient’s fiscal year are Targeted Section 3 workers.
     Visual Aid that explains the HUD Labor Hour Benchmarks Percentages. Large Green Circle depicts All Workers (100% Labor Hours), Smaller Blue Circle within depicts All Section 3 Workers (25% Labor Hours), and much smaller Red Circle within depicts Targeted Section 3 Workers (5% Labor Hours). Text Reads: "Section 3 Worker 25% Labor Hour Benchmark Goal. To Calculate: Section 3 Worker Labor Hours divided by Total Labor Hours = 25%. Targeted Section 3 Worker 5% Labor Hour Benchmark Goal. To Calculate: Targeted Section 3 Worker Labor Hours divided by Total Labor Hours = 5%.

     

New Hire 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.

Hiring Priorities

Employment and training opportunities created by public housing financial assistance (PH) shall be given to Section 3 Workers in the following Order of priority:

1. To residents of the public housing projects for which the public housing financial assistance is expended

2. To residents of other public housing projects managed by HACLA or for residents of Section 8-assisted housing managed by HACLA.

3. To participants in YouthBuild programs.

4. To low- and very low-income persons residing within the metropolitan area in which the assistance is expended.

 

Employment and training opportunities created by housing and community development programs (HCD) shall be given to Section 3 Workers in  the following order of priority:

1. Section 3 Workers residing within the service area or the neighborhood of the project.

2. Participants in YouthBuild programs. 

 

Section 3 Worker Enrollments and Opportunities :

How to Register as a Section 3 Worker

HACLA maintains a database of qualified employment-ready Section 3 Workers who are referred to contractors for their hiring needs.

Section 3 Workers wishing to enroll in the registry must complete Section 3 Worker Registry Enrollment Form and submit it to Fidelina Rivas (email: Fidelina.Rivas@hacla.org). General questions relating to the Section 3 Worker Registry, or assistance to find qualified Section 3 Workers should be directed to Fidelina Rivas.

Section 3 Worker Jobs and Training Opportunities

Public housing residents and other Section 3 Workers interested in obtaining jobs at HACLA projects should enroll in the Section 3 Worker Registry by contacting Fidelina.Rivas@hacla.org. Variety of jobs are available, mainly in the construction industry. These jobs become available in connection with projects that HACLA undertakes and change daily. Please contact us to learn about current openings.

In addition to jobs, if Section 3 Workers are interested in training programs, pre-apprenticeship enrollments, or other long term career opportunities, they should follow the same process of registration and contacting us. Various opportunities become available on ongoing basis.

Earned Income Disallowance

The Earned Income Disallowance (EID) is a program that allows tenants who have been out of work to accept a new job without having their rent increase right away. The program applies to both public housing workers and section 8 voucher holders with disabilities. To learn more about the program click here.
 

Section 3 Success Stories

Meet our Section 3 Workers who have successfully found employment and are sharing their stories with you. Click here to read about their journeys. Section 3 Worker Stories

If you are a Section 3 worker and wish to share your story, please contact section3@hacla.org.

 

Section 3 Business Registry: 

    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
     

     

    Section 3 Contracts, Commitments and Compliance:

    Section 3 Covered Contracts and Economic Opportunity Plans

    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.

    Commitments and Qualitative Efforts

    Contractors who commit to providing other economic opportunities, such as trainings and apprenticeships 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 and Qualitative Efforts

    The list below illustrates economic opportunities and qualitative efforts vendors can engage in. 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 Workers. 

    • Provide maintenance and labor related trainings
    • Provide apprenticeship and certification programs enrollments
    • Provide internships
    • Provide assistance to apply for/or attend community college, or four-year educational institution, or vocational/technical training.

    See 24 CFR Part 75.15 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.

    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/

    HUD Exchange: Section 3 FAQs

    HUD Exchange hosts a Frequently Asked Questions portal. Find answers to your frequently asked questions at this link. https://www.hudexchange.info/section-3/faqs/
     

    Section 3 Compliance Report

    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.