Section 3 information - Procurement and Modernization

Section 3 (24 CFR 75) is a provision of the Housing and Urban Development Act of 1968. The purpose of Section 3 to ensure that employment and other economic opportunities generated by the U.S. Department of Housing and Urban Development (HUD) financial assistance to the Medford Housing Authority, 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 (Section 3 Workers), particularly those who are recipients of government assistance for housing (Targeted Section 3 Workers), and to business concerns which provide economic opportunities to low- and very low-income persons (Section 3 Business Concerns).  

Section 3 is both race and gender neutral.  The standards provided under this regulation are based on income-level and location.  A minority and/or women owned business enterprise must provide evidence that it meets at least one criterion of a Section 3 Business Concern in order to be considered a Section 3 business concern.  HUD anticipates that Section 3 will serve to support, and not impede, contract opportunities for minority business enterprises.

Section 3 is triggered when an employment or training opportunity is available within the Medford Housing Authority Administrative Offices, or when Medford Housing Authority service contractors, construction companies or organizations that have a direct or indirect contract with the Medford have a need for “New Hires.”  Section 3 is not intended for employers, contractors or subcontractors to terminate existing employees, but to make every effort feasible to employ qualified low-income individuals or give businesses owned by low-income individuals the opportunity for growth and self-sufficiency through employment or training to ensure success for their businesses.  

Moreover, Section 3 may also be applied to create a multiplier effect through professional services contracts, as well as vendors who supply goods and services to the Medford Housing Authority and have a need for “New Hires” within their organizations.  

New hires are employees hired for permanent, temporary, or seasonal employment.  It is however, the goal of the Medford Housing Authority and intent of Section 3 regulations to provide full time employment or employment training opportunities to low-income individuals.

Medford Housing Authority Procurement and Modernization staff will work closely with its service providers and contractor/sub-contractors to meet the requirements of the Medford Housing Authority Section 3 Program.


Targeted Section 3 Workers:
Includes any worker who is employed by a Section 3 Business Concern or is a:
• Resident of public housing or receives Section 8 assisted housing;
• Resident of another project managed by the Medford Housing Authority that is expanding the assistance; or
• A YouthBuild participant.

Section 3 Worker:
Any worker who currently fits or when hired within the past five years fit at least one of the following categories:
• The worker’s income from the previous or annualized calendar year is below the  low-income limit established by HUD (to be provided by the Medford Housing Authority);
• The worker is employed by a Section 3 Business Concern; or
• The worker is a YouthBuild participant.

Section 3 Business Concern:
• At least 51% owned by low or very low-income persons;
• 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 25% owned by current public housing residents or residents who currently live in Section 8 Assisted Housing.