What is Section 3?
Section 3 is a provision of the U.S. Department of Housing and Urban Development (HUD) Act of 1968 that promotes local economic development, neighborhood economic improvement, and individual self-sufficiency. Section 3 is intended to ensure that when employment or contracting opportunities are generated because a Section 3 covered project or activity requires the employment of additional persons or the awarding of contracts for work, preference must be given to low and very-low income persons or business concerns residing in the community where the project is located.
Section 3 covered projects involve the construction or rehabilitation of housing (including reduction of lead-based paint hazards), or other public construction such as: street repair, sewage line repair or installation, updates to building facades, etc.
Section 3 is both race and gender neutral. The preferences provided under this regulation are based on income level and location.
About the Twin Cities Section 3 Collaborative
The Twin Cities Section 3 Collaborative empowers Twin Cities metro area Low Income and Public Housing Residents and Businesses to connect to jobs, training opportunities, contracting opportunities, and apply for Section 3 certification. The Consortium consists of the City of Saint Paul, City of Minneapolis, the Minneapolis Public Housing Authority, Ramsey County, Hennepin County, Anoka County, Washington Community Development Agency, and the Dakota County Community Development Agency. The purpose of the Collaborative is to consolidate resources and be a One-Stop Shop for all things Section 3 in the Twin Cities Metropolitan Area. What this means is when you get certified with the Collaborative, your Business and/or Resident certification is reciprocated with any of the agencies and offices in the Collaborative. Furthermore, you can use the information here to gain access to jobs, training, and contracting opportunities offered by any of the Collaborative members and more.
Am I Eligible?
An individual is eligible as a HUD SECTION 3 RESIDENT if they meet one of the following criteria:
Section 3 Worker:
- Gross income for the previous or annualized calendar year is below the income limit established by HUD. 2021 HUD Income Standard for Mpls-St. Paul-Bloomington are Low Income (80% AMI) is $55,950 Very Low Income (50% AMI) is $36,750
- Employed by a Section 3 business concern.
- YouthBuild participant.
Section 3 Targeted Worker in a Public Housing Program:
- Employed by a Section 3 business concern.
- Youthbuild participant
- A resident in public housing, Section 8-assisted housing, and/or resident of other public housing projects to Section 8-assisted housing managed by the PHA that is providing the assistance.
Section 3 Targeted Worker with a Community Development Agency:
- Employed by a Section 3 business concern.
- YouthBuild participant.
- Resident in public housing, Section 8-assisted housing, and/or a resident of other public housing projects or Section 8-assisted housing managed by the PHA that is providing the assistance (applies only to Public Housing Assistance Projects).
- Live within the service area or the neighborhood of the project. Per 24 CFR § 75.5; Service area or the neighborhood of the project means an area within one mile of the Section 3 project or, if fewer than 5,000 people live within one mile of a Section 3 project, within a circle centered on the Section 3 project that is sufficient to encompass a population of 5,000 people according to the most recent U.S. Census (applies only to Housing and Community Development Assistance).
A business is eligible as a HUD SECTION 3 BUSINESS if they meet one the following criteria:
1) Business must operate/headquarter within the 13-county Twin Cities metro area, which includes the counties of: Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright counties in Minnesota; and Pierce and St. Croix counties in Wisconsin.
and at least ONE of the following:
- At least 51% owned and controlled by a low- or very low-income person(s).
- Over 75% of the labor hours performed for the business over the prior three-month period are performed by a Section 3 worker(s); or
- A business at least 51% owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing.
For faster processing, please print out applications below, complete it legibly, and email it to Jef Yang at jef.yang@ci.stpaul.mn.us.
For Section 3 Residents
Worker Certification Application (fillable PDF)
Worker Certification Application (printable)
Jobs and Training Opportunities (Upcoming)
For Section 3 Businesses
Business Certification Application (fillable PDF)
Business Certification Application (printable)
Business Development Training and Workshops (Link)
Section 3 Contracting Opportunities and Open Houses (Link)
Federal HUD Section 3 Business Registry
The U.S. Department of Housing and Urban Development (HUD) is pleased to announce the national expansion of the Section 3 Business Registry, which had been piloted previously in Detroit, New Orleans, Miami, Los Angeles, and Washington, DC. The Section 3 Business Registry allows businesses that meet one of the definitions of a Section 3 Business Concern to self-certify their status with HUD. It also offers a searchable online database of self-certified Section 3 business concerns that can be used by government agencies, Public Housing Authorities, developers, contractors and non-profits to notify Section 3 business concerns about the availability of local HUD-funded contracts. HUD anticipates that the Section 3 Business Registry will help increase the visibility of Section 3 business concerns and provide them better access to HUD-funded contracting opportunities in their communities. Additionally, the registry is a valuable tool to help recipients of covered HUD funding achieve compliance with the requirements of Section 3. Please visit www.hud.gov/sec3biz to learn more about HUD’s Section 3 Business Registry.
Section 3 Working Capital Loan Program
The City of Saint Paul sponsors a working capital loan program targeting low-income Section 3 businesses in and around the City of Saint Paul. Applicants who meet certain criteria may be eligible for loans that they may be unable to qualify for in the private marketplace. For more information, please contact Brian Singer at the Neighborhood Development Center at 651-379-8422.
