Created by the Housing and Urban Development (HUD) Act of 1968, Section 3 applies to public housing programs, housing and community development programs, and other Federal and HUD assistance (24 Code of Federal Regulations Part 135).
Purpose
The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD financial assistance shall, to the greatest extent feasible, 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.
One of the purposes of the assistance is to give, to the greatest extent feasible, job training, employment, contracting and other economic opportunities to Section 3 residents and Section 3 business concerns. If you live in government-assisted housing or if your household income falls below, you may qualify as a Section 3 resident or Section 3 business concern.