Please note, this section is being updated due to the newly implemented HUD Section 3 rule.
- income; and
- residency in the Twin Cities metro area which includes the counties of: Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright counties in Minnesota; and Pierce and St. Croix counties in Wisconsin.
Recipients of Section 3 funding must provide job training, employment, and contracting opportunities to qualifying residents for projects and activities in their neighborhoods.
The HUD Section 3 program has two goals - one for Business Subcontracting and one for Resident New Hires.
Section 3 Business subcontracting goal
Prime contractors must subcontract 10% of the project total to Section 3 Businesses. If this goal is not met, the prime contractor must document all efforts to meet this requirement.
There are three ways to qualify as a Section 3 Business (must meet one of the following criteria):
- at least 51% of the business is owned by a Section 3 Resident(s)
- at least 30% of the business's full-time employees include people who are current Section 3 Residents or were Section 3 Residents within three years of being hired
- the business makes a commitment to subcontract more than 25% of the dollar award of all subcontracts to businesses that meet one of the first two qualifications
Section 3 Resident new hire goal
Definition of a Section 3 Resident (must meet one of the following criteria):
- a public housing resident
- a participant in a HUD Youthbuild program
- a homeless person living in the metropolitan statistical area where the HUD-assisted project is located
- a low or very low-income person living in the metropolitan statistical area where the HUD-assisted project is located
Definition of a Section 3 New Hire:
- a full-time employee hired for a permanent, temporary, or seasonal position that’s created as a direct result of a HUD-funded project; or
- a worker who was laid-off and is re-hired as a result of a HUD-funded project
Job categories that count toward the Section 3 Resident New Hire Goal include:
- all employment opportunities related to housing rehabilitation (including reduction and abatement of lead-based paint hazards)
- housing construction
- other public construction (management and administrative jobs, technical, professional, building trades, and non-construction jobs)