Section 3 Program

What is Section 3?

Section 3 is a federally mandated program of the U.S. Department of Housing and Urban Development (HUD). Under Section 3 of the HUD Act of 1968, federal funding invested in housing and community development shall provide contracts, employment, training, and other economic opportunities to low- and very low-income people in the local jurisdiction and to businesses that provide such opportunities, also known as “Business Concerns.”

Section 3 requires that “to the greatest extent feasible,” businesses working on projects that receive certain financial assistance from HUD must make a good faith effort to train and hire low- and very low-income individuals, and contract with businesses that do so. The program is implemented and regulated by Part 135 of Title 24 of the Code of Federal Regulations (24 CFR 135).

• Employment opportunities for RHHA certified Section 3 Residents may include: professional, technical, construction, and administrative.

• Contracting and/or subcontracting opportunities for RHHA certified Section 3 Businesses include but are not limited to construction, professional services, and general services.

• The Housing Authority of Rock Hill (RHHA) complies with Section 3 within its own operations and ensures the compliance of its sub-recipients, developers, contractors, and subcontractors.

Contract Compliance

Sub-recipients, developers, contractors and subcontractors on SDHC Section 3 covered contracts and projects must, to the greatest extent feasible, make a documented effort to achieve the HUD Section 3 numerical goals by awarding contracts to qualified Section 3 Business Concerns and employing qualified Section 3 Residents, if the need to award contracts and/or hire new employees occurs:

• Employ Section 3 Residents as 30 percent of all new hires during a one-year period of the project (i.e., A construction contractor hires 10 new workers; 3 of the new workers should be Section 3 Residents).

Contracting:
a. Award Section 3 Business Concerns at least 10 percent of the total contract dollar amount for construction or rehabilitation services; and
b. Award Section 3 Business Concerns at least 3 percent of the total contract dollar amount for non-construction services.

For assistance in identifying certified Section 3 Residents and Section 3 Business Concerns, contact RHHA’s Section 3 Coordinator at 803-324-3060 or mail to: bpatton@rhha.org


Economic Opportunities

Training and Employment for Section 3 Residents

RHHA’s Section 3 Unit assists Section 3 Residents, individuals who are low-income and reside in the Rock Hill jurisdiction, in obtaining employment with businesses performing on HUD Section 3 covered contracts or projects. An eligible individual who certifies as a Section 3 Resident with RHHA is placed on a registry and is notified of employment and training opportunities.

Contracts for Section 3 Business Concerns

RHHA’s Section 3 Unit assists businesses that qualify as Section 3 Business Concerns in the Charlotte-Concord-Gastonia NC-SC MSA to obtain contracting opportunities on HUD Section 3 covered contracts and projects. Section 3 Business Concerns are businesses that are:

• Majority-owned by low-income individuals that reside in the Charlotte-Concord-Gastonia NC-SC MSA;

• Employ low-income persons who reside in the Charlotte-Concord-Gastonia NC-SC MSA as 30 percent of their full-time workforce; or

• Provide evidence of a commitment to subcontract more than 25 percent of the dollar amount of the awarded contract to Section 3 Business Concerns

• An eligible business that certifies as a Section 3 Business Concern with RHHA is placed on a registry and is notified of contracting opportunities, business development workshops and conferences; and is referred to businesses who are seeking Section 3 Business Concerns.

For questions, contact the RHHA Section 3 Unit: (803) 324-3060 or bpatton@rhha.org