Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968. The purpose of Section 3 is to ensure that employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, and consistent with existing Federal, State and local laws and regulations, be directed to low-and very low income persons, particularly those who are recipients of government assistance for housing, and to business concerns which provide economic opportunities to low- and very low-income persons.

The U.S. Department of Housing and Urban Development’s regulations implementing Section 3 are found at 24 CFR Part 135.

When Section 3 is applicable, the Housing Authority requires its contractors to demonstrate good faith efforts to comply, to the greatest extent feasible, with Section 3 and HACLA’s Section 3 Guide and Compliance Plan.

HACLA's Board of Commissioners is vested in ensuring that HACLA has a robust Section 3 plan and that economic opportunities are directed to Section 3 Businesses and Section 3 Residents to the greatest extent possible.

What is a Section 3 Business Concern?

Section 3 Business Concerns are businesses that can provide evidence that they meet one of the following criteria:

  • 51 percent or more of the business is owned by Section 3 Residents; or
  • 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
  • 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.

Click here for more information and resources: Section 3 Business Resources

Who is a Section 3 Resident?

A Section 3 Resident is:

  • A Public housing resident; or
  • a low income person residing in the metropolitan area or non-metropolitan county where the Section 3 covered assistance is expended.

Click here for more information and resources: Section 3 Resident Resources


Questions about the Section 3 program can be directed the Section 3 Compliance Administrator via e-mail at [email protected].

  • I want to improve communities and have a positive social impact.

    Alejandro Lopez ELP Advisors
  • They push me and motivate me on a regular basis. I have the support here to grow professionally. 

    Grethel Fuentes ELP Advisors
  • 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 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