What is Section 3?

Section 3 of the Housing and Urban Development Act of 1968, (12U.S.C.1701u)(Section3) and implementing regulations at 24 C.F.R.135 states 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.

Why is Section 3 important to the City of Dayton?

The City of Dayton, as grantee for federal community development funds, is required by HUD to develop and implement a Section 3 program designed to ensure contracting and subcontracting opportunities for Section 3 designated companies, as well as hiring opportunities for residents in Section 3 designated neighborhoods.  Dayton embraces the spirit and intent of its obligations under Section 3, and has set forth the following policies which are applicable to contractors, subcontractors, developers, and/or sub-recipients and others engaged in projects funded through the City of Dayton, Ohio with funds (meeting the respective established thresholds of $200,000 and $100,000) sourced from the U. S. Department of Housing and Urban Development.  These policies are discussed throughout the remainder of this guidebook.

Eligibility for Section 3 Business Concern

The HRC is responsible for certifying Section 3 business concerns.  A list of Section 3 certified businesses or a certification application can be found in the "Reference Materials" section below. A list can also be obtained by calling (937) 333-1403. 

Eligibility

• 51% owned by a certified Section 3 eligible resident; or
• 30% or more of the business’ permanent full time employees are certified Section 3 residents or were Section 3 resident within their first three years of employment; or
• 25% or more of the subcontracts are awarded to certified Section 3 business concerns 

Eligibility for a Section 3 Resident

Individuals interested in becoming certified as a Section 3 eligible resident should contact the Dayton Metropolitan Housing Authority.  A copy of the application is included in Appendix E.

Companies submitting applications for current employees as documentation for business certification eligibility only need to require employees to submit the Income Certification Form and Section 3 Preference Form. Current employees will not be added to the notification list without the resident application.

Eligibility

• Proof of residency (lease in a HUD or other federally assisted program)
• Proof of public assistance, e.g. Temporary Assistance to Needy Families (TANF) recipients, etc.
• Proof of participation in a federally assisted program such as job training programs, etc.
• Proof of participation in a state or local assistance program, or other program that assists low- or very-low income persons

Additional information on the HUD Section 3 Program can be found at www.hud.gov/section3.