Section 3 Program | Cumberland Housing

Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701u) (Section 3) requires Cumberland Housing Group to ensure that employment and other Economic and business opportunities generated by the Department of Housing and Urban Development (HUD) financial assistance, to the greatest extent feasible, are directed to public housing residents and other low-income persons, particularly recipients of government housing assistance, and business concerns that provide economic opportunities to low- and very low-income persons.

Our Goals:

It is the policy of Cumberland Housing Group to utilize residents and other Section 3 eligible persons and businesses in contracts partially or wholly funded with monies from the Department of Housing and Urban Development (HUD). Cumberland Housing Group has established employment and training goals that contractors and subcontractors should meet in order to comply with Section 3 requirements. (Reference 24 CFR 75.9– Numerical goal for meeting the greatest extent feasible requirement). The numerical goal is:

Twenty-five (25) percent or more of the total number of labor hours worked by all workers employed with public housing financial assistance in the HA’s fiscal year are Section 3 workers;
- Section 3 Labor Hours/Total Labor Hours = 25%

Five (5) percent or more of the total number of labor hours worked by all workers employed with public housing financial assistance in the HA’s fiscal year are Targeted Section 3 workers, as defined at 24 CFR Part 75.11.
- Targeted Section 3 Labor Hours/Total Labor Hours = 5%

CHG Residents & Other Eligible Workers

Who is a Section 3 Worker and Targeted Worker?

Section 3 Worker

Any worker who currently fits at least one of the following categories:

Worker’s income is below the low-income limit of 80% Area Median Income
Worker is employed by a Section 3 business concern
Worker is YouthBuild participant

Section 3 Targeted Worker

Any worker who is employed by a Section 3 business concern or is:

Resident of public housing or receives Section 8 assisted housing
Resident of another project managed by the housing authority that is expending the assistance
A YouthBuild participant

Certification Process:

A Section 3 worker seeking certification shall submit self-certification documentation to Cumberland Housing Group, that the person is a Section 3 worker or Targeted Section 3 worker as defined in 24 CFR Part 75. The self-certification form can be obtained from the Section 3 Coordinator and on our website. For the purposes of Section 3 worker eligibility, Cumberland Housing Group will use individual income rather than family/household income to determine eligibility. The income limits will be updated and published annually at HUD USER.

Once this form is complete, the Section 3 Coordinator will determine if the individual meets the eligibility requirements and is job ready. If the individual is job ready, the certification form will be referred to the recipient contractor or subcontractor for employment.
If the individual is deemed eligible for Section 3 participation and deemed not ready for employment, a referral will be made to other agencies that are better equipped to address the individual’s needs, i.e., job readiness skills.
The Section 3 job readiness component is a part of Cumberland Housing Group’s commitment to provide economic opportunities and training to residents/eligible participants to become gainfully employed.

Section 3 Worker/Targeted Worker Documents:

517.2 Employment Opportunity Notice

517.3 Section 3 Applicant Self-Certification

Businesses

What is a Section 3 Business Concern?

Business Concern

Any business meeting at least one of the following criteria, documented within the last six-month period:

Is 51% or more owned by low- or very low- persons; or
Over 75% of the labor hours performed for the business are performed by low- or very low-income persons; or
It is a business at least 51% owned by the current public housing resident or residents who currently live in Section 8 assisted housing.

Certification Process:

Businesses that believe they meet the Section 3 Business requirements may self-register in the HUD Business registry. Any business seeking Section 3 preference in the awarding of contracts or purchase agreements with Cumberland Housing Group shall complete the Certification for Business Concern form which can be obtained from the Cumberland Housing Group Section 3 Coordinator or our website. The business seeking Section 3 preference must be able to provide adequate documentation as evidence of eligibility for preference under the Section 3 Program.

Certifications for Section 3 preference for business concerns must be submitted to the Section 3 Coordinator of Cumberland Housing Group prior to the submission of bids for approval. If the Section 3 Coordinator previously approved the business concern to be Section 3 certified, then the certification can be submitted along with the bid. The Section 3 Business Concern Certification Form will expire after 3 years. Businesses that have previously qualified as a Section 3 Business Concern will have to recertify under the new definition.

Section 3 Business Concern Documents:

517.1 Certification Letter

517.3 Section 3 Applicant Self-Certification– for workers/targeted workers

517.4 Section 3 Business Certification

517.5 Section 3 Employee List

Contractors, Subcontractors, Vendors, and Suppliers

Section 3 requirements apply to all contractors and subcontractors performing work in connection with projects and activities funded by public housing assistance covered by Section 3, regardless of the amount of the contract or subcontract. Section 3 covered contracts do not include contracts for the purchase of supplies and materials unless the contract includes the installation of the materials.

Our Section 3 plan (included on this page) explains all our requirements, priorities for hiring Section 3 Workers/Targeted Workers and businesses, and the responsibilities of the contractor and the PHA. All documentation that is required to be reviewed and filled for Section 3 compliance will be available below and on our Vendor and Contractor documents page.

Section 3 Compliance Documents:

517 Attachment 7 Section 3 Policy, Procedure, and Contractor Checklist

517.3 Section 3 Applicant Self-Certification– for workers/targeted workers

517.4 Section 3 Business Certification

517.6 Section 3 Compliance Report

517.7 Contractor Payroll Report– use only if Davis Bacon Wage does not apply to the contract

517.9 Assurance of Section 3 Compliance

517.10 Section 3 Contract Clause

HUD Section 3 Opportunity Portal

All contractors, subcontractors, Section 3 workers, and business concerns are able to register and use the opportunity portal to search for contracts, employment positions, and businesses. An account is not needed to search for opportunities but is required to upload resumes, job openings, etc. The opportunity portal link and How-to-Use guides are available in the resources section below.