Section 3 Program

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Overview 

The City of Albany, Department of Community and Economic Development (DCED) is responsible for compliance with Section 3 Program Requirements related to federally funded programs its administers for the City.  The purpose of Section 3 Program Regulations is to ensure that U.S. Department of Housing and Urban Development (HUD) funds typically invested in housing and community development activities, to the greatest extent feasible, contribute to employment and training opportunities for very low and low-income residents living in or near a HUD-funded project. 

Public housing authorities and entities that receive an aggregate of more than $200,000 from housing and community development programs are required to comply with Section 3 requirements of the U.S. Department of Housing and Urban Development Act of 1968.  Ten percent (10%) of the total dollar amount of all Section 3 covered contracts for construction related contracts (to include professional service contracts, housing construction , demolition, rehabilitation, or other public construction) and three percent (3%) of all Section 3 covered contracts for non-construction related contracts are the minimum annual goals for contracting by the recipient agencies.  With respect to recipients of housing and/or community development funding, all contractors or subcontractors that receive contracts in excess of $100,000 for housing construction, rehabilitation, or other public construction are required to comply with the requirements of Section 3.

Section 3 pertains to all Department of Community and Economic Development programs and include the following funding sources: 

  • Community Development Block Grant (CDBG)
  • Home Investment Partnerships Program (HOME)
  • Emergency Solutions Grants (ESG) Program
  • Neighborhood Stabilization Program (NSP) 

For additional information on Section 3, please click the link https://www.hud.gov/Section3.

Who is a Section 3 Resident?

A Section 3 Resident is a person who is a public housing resident or a low or very low income resident of the City of Albany (per HUD’s Income Limits) to include the area of the Section 3 covered project. For HUD’s current income limits, please click: https://www.huduser.gov/portal/datasets/il.html

How do I apply to become a Section 3 Business Concern? 

Businesses that can provide evidence that they meet one of the following criteria may apply for designation as a Section 3 Business Concern: 

  • Their business is 51% or more owned by Section 3 Residents; or
  • At least 30% of the business’ full-time employees are currently Section 3 Residents or were Section 3 Residents within 3 years of the date of first hire; or
  • The business will provide evidence of a commitment to subcontract in excess of 25% of the dollar award of all subcontracts to business concerns that meet one of the first two criteria above.

A Section 3 Business Concern can be any type of business such as a sole proprietorship, partnership or a corporation, properly licenses in meeting all legal requirements to perform the contract under consideration.   A business may apply as a Section 3 Business Concern by completing the form found at https://portalapps.hud.gov/Sec3BusReg/BRegistry/RegisterBusiness.action.  Businesses interested in receiving Section 3 preference for DCED projects must complete the Section 3 Business Concern Application and submit the Section 3 Action Plan as a part of their bid package.