Section 3 Information

According to the Department of Housing and Urban Development, Section 3 "is a means by which HUD fosters local economic development, neighborhood economic improvement, and individual self-sufficiency." Wherever HUD financial assistance is expended for housing or community development, to the greatest extent feasible, economic opportunities will be given to Section 3 residents and businesses in that area.
Section 3 applies to the any CDA construction contract that meets one of the following criteria:

  • is over $100,000 and is part of a project involving over $200,000 of HUD funding
  • is a project at any of the CDA's public housing “MHOP” properties
  • includes funding from the Washington County CDBG program

Section 3 also applies to any new full time employment opportunity at the CDA in which the position is funded in part by monies received from HUD.

Section 3 Residents

If you are a resident of an CDA-owned property or a low income resident in the metro area, you may be certified as a Section 3 resident.  Any new full time employment opportunity from Section 3 projects must be directed to Section 3 residents. Qualified residents will be placed on a list to receive notices for job openings covered by Section 3.

To be placed on the list, please complete the Resident Certification Form and return by mail to the address on the form. Please note that your household must be below the income thresholds outlined on the form.

Section 3 Business Concern

If your business meets one of the following criteria, it can be registered with the CDA as a Section 3 business concern. Any subcontracting opportunity from Section 3 projects must be directed to local Section 3 business concerns.

  • 51 percent or more of the business is owned by Section 3 residents
  • At least 30 percent of the business' full-time employees are Section 3 residents, or were Section 3 residents within three years of the date they were first employed
  • Can provide evidence, as required, of a commitment to subcontract in excess of 25 percent of the dollar award of all subcontracts to be awarded to business concerns that meet either of the qualifications listed above.

Complete the CDA's Section 3 Business Concern Certification Form to get on the CDA Section 3 Business Concern List which is distributed at Section 3 project pre-bid meetings.


Construction contractors must fulfill a number of responsibilities in order to participate in any Section 3 projects.  Contractors must make efforts to fulfill the Section 3 project goals as follows:

  • Section 3 residents will comprise of 30% of new hires
  • Section 3 business concerns will comprise 10% of construction contract dollar amounts, and 3% of non-construction contract dollar amounts.
  • Provide documentation of how new employment and business opportunities were directed to the greatest extent feasible to Section 3 residents and business concerns to achieve the goals listed above.

See the Section 3 Compliance Plan and the Section 3 Employment and Contracting Report for more details. The compliance plan must be completed as part of any bid submitted for a Section 3 project. All contracts under Section 3 will include the following language.

For questions about the CDA's Section 3 program, please contact Bill Lightner.