Section 3 information - Procurement and Modernization



Overview of the Section 3 Program

The Medford Housing Authority Section 3 Contract Provisions will be provided to assist recipients of Medford Housing Authority Federal Financial Assistance to implement the requirements of their Medford Housing Authority Section 3 Contract.  Incorporated into these provisions are 24 CFR 75 Economic Opportunities for Low-and Very Low-Income Persons.  Recipients (Service Contractors, Construction Contractors and Subcontractors, and other organizations with a contract/Purchase Order) of Medford Housing Authority Federal Financial Assistance are obligated to implement requirements pertaining to Public Housing Federal Financial Assistance, under 24 CFR 75 throughout the term of its contract with the Medford Housing Authority.  Staff of the Medford Housing Authority Procurement and Modernization Departments will work closely with its recipients to provide assistance with Section 3 obligations. 

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).  Recipients will report monthly on the total number of labor hours worked and of the total hour worked, how many hours were worked by Section 3 Workers and/or Targeted Section 3 Workers.  Reporting benchmarks of labor hours to meet the Section 3 requirements contract are 25% of all employee labor hours worked by Section 3 Workers with 5% of those workers identified as Targeted Section 3 Workers.  Recipients who do not meet the goals of labor hours, must report on the quantitative efforts utilized to meet the obligations of Section 3.  All labor hours worked by employees of verified Section 3 Business Concerns are defined as Section 3 Workers or Targeted Section 3 Workers.

Professional services contracts and materials only contracts are exempt from Section 3.  However, professional services or material provider recipients are encouraged to voluntarily participate in Section 3 by a) seeking a low and very low-income person for a position under the contract and/or b) reporting all hours worked by recipient’s current employees who identify as Section 3 Workers and/or Targeted Section 3 Workers under the contract.  All labor hours worked by all employees under the contract would not have to be reported.

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.  All new hires if feasible will be Section 3 Workers.  Organizations that have a contract with the Medford Housing Authority can also meet their Section 3 obligations by identifying active employees who within the last five years reside in Medford Housing Authority Public Housing or participate in the Medford Housing Authority Section 8 Program; or whose income within the last year is below the low and very-low income as defined by HUD.  Moreover, recipients may meet their Section 3 obligations if they are verified as a Section 3 Business Concern as labor hours of all workers at a Section 3 Business Concern’s are reported as Section 3 Workers.  Section 3 is not intended for recipients to terminate existing employees, but to make every effort feasible to employ qualified low and very-low-income persons or give businesses owned by low and very low-income persons or that employ low and very-low income persons the opportunity for growth and self-sufficiency through employment or training.  

It is the goal of the Medford Housing Authority and intent of Section 3 regulations to provide full time employment or employment training opportunities to low and very low-income persons.  Consistent with existing federal, State and local laws and regulations, recipients of public housing financial assistance through the Medford Housing Authority, must make their best efforts to provide employment and training to Targeted Section 3 Workers and/or Section 3 Workers.