What is Section 3?
Section 3 of the Housing and Urban Development Act of 1968, (12U.S.C.1701u) and implementing regulations at 24 C.F.R.135, states 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.
Why is Section 3 important to the Mississippi Development Authority?
MDA administers federal community development block grant funds and therefore is required by HUD to develop and implement a Section 3 program designed to ensure contracting and subcontracting opportunities for Section 3 designated companies, as well as hiring opportunities for Section 3 residents in project areas. MDA agrees with the spirit and the intent of its obligations under Section 3, and has established policies and procedures which are applicable to contractors, subcontractors, developers, and/or sub-recipients and others engaged in projects funded with funds (meeting the respective established thresholds of $200,000 and $100,000) sourced from the U. S. Department of Housing and Urban Development.
Eligibility for Section 3 Business Concern
A section 3 business concern means a business that is:
- 51% owned by a certified Section 3 eligible resident; or
- 30% or more of the business’ permanent full time employees are certified Section 3 residents or were Section 3 resident within their first three years of employment; or
- 25% or more of the subcontracts are awarded to certified Section 3 business concerns
A directory of Section 3 certified businesses can be found in the Section 3 Reference Materials section below. A list can also be obtained by contacting MDA’s Section 3 Coordinator.
MDA does not guarantee that Business Concerns appearing on the MDA Section 3 Business Concern Directory qualify as a Section 3 Business. The list merely identifies those businesses that claim to qualify as Section 3 Businesses. Furthermore, appearance on the Section 3 Business List does not in any way serve as a guarantee that any business will be selected for or awarded any contract or business opportunity.
Eligibility for a Section 3 Resident
A section 3 resident means:
- A public housing resident; or
- A low income person who lives in the metropolitan area where a HUD-assisted project for housing or community development is located. Low income is defined as income below 80% of the median household income of that area.
Individuals interested in becoming certified as a Section 3 eligible resident should contact the Jackson Metropolitan Housing Authority. A copy of the application is included below in the Section 3 Reference Materials. Individuals should also complete the Section 3 Resident Certification and submit to MDA Section 3 Coordinator by any of the contact methods listed at the end of this page. Any individual seeking the Section 3 resident preference for employment and training should also be prepared to provide proof of Section 3 status upon request. Such proof of eligibility includes but is not limited to the following:
- Proof of residency (lease in a HUD or other federally assisted program)
- Proof of public assistance, e.g. Temporary Assistance to Needy Families (TANF) recipients, etc.
- Proof of participation in a federally assisted program such as job training programs, etc.
- Proof of participation in a state or local assistance program, or other program that assists low- or very-low income persons
Additional information on the HUD Section 3 Program can be found at www.hud.gov/section3.
Section 3 training can be provided through MDA, if requested. Please send inquiries to the address listed below to discuss any Section 3 training needs.
MDA Section 3 Program
P.O. Box 849
Jackson, MS 39205
Section 3 Reference Materials
Section 3 Regulations
Section 3 Frequently Asked Questions
Section 3 Clause
Mississippi Income Limits as determined by HUD
Section 3 Business Concern Directory
(updated June 16, 2020, zoom in to view)
Section 3 Requirements Training Presentation PowerPoint PDF