Most opportunities created under HUD’s Section 3 rules are tied to HUD‑funded construction, rehabilitation, and maintenance projects and the professional services that support them. Typical Section 3 jobs include:
Typical Section 3 contracts go to small, local firms doing work such as general construction, specific trades (plumbing, electrical, HVAC, roofing), demolition, property maintenance, landscaping, security, janitorial services, and professional services tied to HUD‑assisted construction/rehab projects.
Under HUD’s current Section 3 rule (24 CFR Part 75), people and businesses qualify as follows:
• Section 3 worker (resident): A worker whose income is low or very low (below HUD income limits for the area), OR who lives in public housing or Section 8‑assisted housing, OR who, within the past 5 years, was youthbuild participant or met the income criteria when first hired by their current employer. Targeted Section 3 workers are a subset who live in the project’s neighborhood or in public/Section 8 housing, depending on the funding source.
• Section 3 business concern: A business that meets at least one of these tests: (1) at least 51% owned by low‑ or very‑low‑income persons; OR (2) over 75% of total labor hours are performed by Section 3 workers; OR (3) at least 25% owned by current public housing or Section 8‑assisted residents.
Proof of eligibility is usually provided through HUD or local certification forms where workers and businesses attest to income, address, public housing/Section 8 status, or workforce composition, and may provide supporting documentation (such as lease showing public housing or voucher status, pay stubs, or tax returns). HUD provides standard self‑certification and employer‑certification forms that agencies can use to document this.
HUD has redesigned Section 3 implementation to reduce inconsistent enforcement and poor data by:
• Moving from “new hires” counts to labor‑hour benchmarks and mandatory annual reporting: Recipients must track and report total labor hours and the share performed by Section 3 workers and targeted Section 3 workers for each covered project, using HUD’s standardized reporting system and forms (e.g., HUD‑60002A, HUD‑4737 series).
• Establishing national numeric benchmarks (safe‑harbor targets): For both public housing and housing/community development assistance, HUD set benchmarks that 25% or more of total labor hours be worked by Section 3 workers and at least 5% by targeted Section 3 workers. HUD periodically reviews national data and can adjust these benchmarks.
• Standardizing tools and compliance reviews: HUD now provides uniform tools for defining service areas, certifying workers and businesses, and tracking labor hours, and it uses a formal “safe harbor” standard plus compliance review checklists to assess whether grantees are meeting requirements.
These steps are intended to generate comparable project‑level data nationwide, make it easier to see which grantees are meeting goals, and give HUD clearer grounds to intervene where enforcement has been weak.
The Assistant Deputy Secretary for Field Policy and Management (FPM) is a senior HUD official who oversees HUD’s network of regional and field offices and helps carry out the Secretary’s priorities at the local level. In practice, this role:
• Manages the Office of Field Policy and Management, which provides leadership, oversight, and support to HUD’s 60+ regional and field offices across the country. • Coordinates how HUD programs and initiatives are implemented in communities, ensuring local offices are engaging residents, local governments, and partners and that they follow department‑wide priorities and policies. • Sets management priorities for non‑programmatic “front office” field work and helps coordinate cross‑program initiatives (like Section 3 outreach, fair housing efforts, and place‑based initiatives) so that HUD’s headquarters policies translate into on‑the‑ground action.
Local workforce and economic development agencies typically coordinate with HUD‑funded grantees (such as the city, county, or housing authority) in several ways to connect residents to Section 3 opportunities:
• Information‑sharing and referrals: American Job Centers, workforce boards, and city workforce agencies share job listings for HUD‑funded projects and refer eligible low‑income residents and public‑housing/Section 8 residents to contractors seeking Section 3 workers.
• Training and placement: Workforce and economic development agencies use their training programs (pre‑apprenticeships, construction training, soft‑skills workshops) to prepare residents for construction, maintenance, and related jobs, then coordinate with HUD grantees and contractors to place graduates on Section 3 projects.
• Business support: Local small‑business and economic development offices help Section 3 business concerns get certified, understand procurement requirements, and compete for HUD‑funded construction, maintenance, or professional‑service contracts.
The Detroit event described in the article fits this pattern: state and local workforce and economic officials joined HUD on a panel to explain how they partner with HUD programs and answer questions about connecting residents and businesses to Section 3 jobs and contracts.
Yes. Under HUD’s updated Section 3 rule, HUD uses measurable outcome metrics to judge performance in places like Detroit:
• Labor‑hour benchmarks: For covered projects, HUD looks at what share of total labor hours are worked by (1) Section 3 workers and (2) targeted Section 3 workers. The current national “safe harbor” benchmarks are 25% of total labor hours by Section 3 workers and at least 5% by targeted Section 3 workers.
• Annual reporting: Recipients (such as Detroit’s housing authority or city government) must report annually to HUD on all completed Section 3 projects, including total labor hours, Section 3 worker hours, targeted Section 3 worker hours, and use of Section 3 businesses. These data feed into HUD’s aggregate reporting and monitoring.
• Compliance and best‑practice reviews: HUD uses the reported data, along with compliance reviews and tools like its HUD Section 3 Compliance Review Checklist, to identify whether grantees are meeting benchmarks and to flag under‑performance or effective practices.
While HUD publishes national benchmark notices and guidance, project‑ and city‑specific outcome data (such as for Detroit) are generally contained in grantee Section 3 reports and may not always be summarized publicly by city.