Labor | MBE-WBE | Procurement Methods | Definitions | Section 3 Requirements for Contractors and Subcontractors | Section 3 Plan | Section 3 Resident Certification | Section 3 Contractor Certification


Section 3 Resident:

  • Section 3 residents are Public Housing (or Section 8) residents or

  • Persons who live in the area where a HUD-assisted project is located and who have a household income that falls below HUD income limits.

Section 3 Business:
A business that:

  • is 51 % or more owned by Section 8 residents; or

  • employs Section 3 residents for at least 30% of its full-time, permanent staff; or

  • provides evidence of commitment to subcontract to Section 3 business concerns 25% or more of the dollar amount of the awarded contract.

Low Income Person:

  • A single individual or a family whose household income does not exceed 80% of the median income for the area, with adjustments for larger and smaller families.

Very Low Income Person:

  • A single individual or a family whose household income does not exceed 50% of the median income for the area, with adjustments for larger and smaller families.


  • Area means the Harrisburg-Carlisle Metropolitan Statistical Area (MSMA) which includes Dauphin, Cumberland and Perry Counties


  • For purposes of the Housing Authority Section 3 activities, neighborhood means Dauphin County, Pennsylvania.

Section 3 Clause:

Every contractor and subcontractor shall incorporate, or cause to be incorporated, in all contracts for work in connection with a Section 3 covered project, the following clause:

  1. The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 u (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3 shall, to the greatest extent feasible, be directed to low and very-low income persons, particularly persons who are recipients of HUD assistance for housing.

  2. The parties to this contract agree to comply with HUD'S regulations in 24 CFR Part 135, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the Part 135 regulations.

  3. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other contract of understanding, if any, a notice advising the said labor organization or workers' representative of the contractor's commitments under this Section 3 clause and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions and the anticipated date the work shall begin.

  4. The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR Part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR Part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR Part 135.

  5. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected, but before the contract is executed, and (2) with persons other than those to whom the regulations of CFR Part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR Part 135.

  6. Noncompliance with HU D's regulations in 24 CFR Part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts.

  7. With respect to work performed in connection with Section 3 covered Indian housing assistance, Section 7(b) of the Indian Self Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian-­owned Economic Enterprises. Parties to this contract that are subject to the provisions of Section 3 and Section 7(b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with Section 7(b).

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