Section 3 Requirements

HUD’s Section 3 policy helps ensure that jobs and economic opportunities created by certain HUD funding go to low- and very-low-income persons.

Section 3 Qualification – Businesses

A Section 3 business meets at least one of three criteria, which can be documented in the last six months:

• At least 51% owned and controlled by low- or very-low-income persons
• Over 75% of business labor hours done by Section 3 workers over the prior three-month period done
• At least 51% owned and controlled by current public housing tenants or tenants who currently live in Section 8-assisted housing

To register as a Section 3 Business, fill out the Section 3 Business Certification Form (PDF). Send the form to section3@kcha.org.

You can also register your Section 3 business on the HUD website.

Though you may not be a Section 3 business, you may still have Section 3 workers whose hours spent on KCHA contracts can count toward our Section 3 goals.

View the full details of HUD’s Section 3 clause (PDF) and KCHA’s Section 3 contracting requirements (PDF).

Section 3 Qualification – Individual

A Section 3 worker is any worker who now, or when hired within the past five years, meets at least one of three criteria:

• The worker’s income for the previous or annualized calendar year is/was below the income limit established by HUD
• The worker is employed by a Section 3 business
• The worker is a YouthBuild participant

A targeted Section 3 worker is a Section 3 worker who also currently meets at least one of three criteria:

• Lives in public housing or Section 8-assisted housing where the construction project is taking place
• Lives in other public housing or Section 8-assisted housing managed by KCHA
• Lives within one mile of the project site

Please fill out a Section 3 Individual Certification Form (PDF) for each person who will be working on the contract.

If your KCHA contract includes Section 3 workers or targeted Section 3 Workers, you must file the Section 3 Labor Hours Benchmark Status Report (PDF) with each billing sent to KCHA.

View the list of Section 3 certified businesses.