Section 3
The Section 3 program requires that recipients of certain HUD financial assistance, to the greatest extent possible, provide training, employment, contracting and other economic opportunities to low- and very low-income persons, especially recipients of government assistance for housing, and to businesses that provide economic opportunities to low- and very low-income persons.
Information for Section 3
Information for Workers
A Section 3 Worker is any individual who currently fits, or when hired within the past five (5) years fits, at least one of the following categories:
- The worker’s income for the previous or current calendar year is below HUD income limits (Español) ; or
- The worker is employed by a Section 3 Business Concern; or
- The worker is a YouthBuild participant.
For questions, call 832-394-6257 or email HCDSection3@houstontx.gov
Information for Businesses
Businesses can apply for Section 3 certification if they are:
- 51% owned and controlled by low-income person(s); or
- 75% of business labor hours are performed by low-income persons; or
- 51% owned and controlled by current public housing residents or residents who currently live in Section 8 assisted housing
In addition to the main application, you will need to provide documentation about your business. You can find a full list of required documents on the Business Concerns Application Checklist (Español ).
Key Links & Documents
Federal Regulations Compliance Packet
Resources
Additional Resources
Section 3 Brochure
| Document Name | Applicable to | Last Updated | View |
|---|---|---|---|
| Section 3 Compliance Forms Packet | Section 3 Workers | 08/01/2025 | View |
| Section 3 Technical Assistance Training Presentation | All | 01/29/2025 | View |
| Champion Scorecard | Section 3 Workers | 04/05/2022 | View |
| Worker Directory | Section 3 Workers | 03/19/2025 | View |
| Section 3 Brochure | Section 3 Workers | 06/15/2022 | View |
Frequently Asked Questions
Q: What is Section 3? - Answer
- Section 3 is a provision of the Housing and Urban Development Act of 1968. The purpose of Section 3 is to ensure that employment and other economic opportunities generated by certain HUD financial assistance shall, 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, particularly those who are recipients of government assistance for housing, and to business concerns which provide economic opportunities to low- and very low-income persons.
Q: What is YouthBuild? - Answer
-
YouthBuild is a community-based pre-apprenticeship program that provides job training and educational opportunities for at-risk youth ages 16-24 who have previously dropped out of high school.
YouthBuild participants learn vocational skills in construction, as well as in other in-demand industries that include health care, information technology, and hospitality. Youth also provide community service through the required construction or rehabilitation of affordable housing for low-income or homeless families in their own neighborhoods.
The Division of Youth Services within the Employment and Training Administration's Office of Workforce Investment at the U.S. Department of Labor administers the YouthBuild program. Each year, more than 6,000 youth participate in approximately 210 YouthBuild programs in more than 40 states. More information can be found here: https://www.dol.gov/agencies/eta/youth/youthbuild .
