Section 3

Overview

Section 3 is a provision of the Housing and Urban Development 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.

Section 3 Information

Section 3 Program Details

Section 3 Registration

The City of Saint Paul maintains a list of Section 3 businesses and residents who qualify under Section 3 of the Housing and Urban Development Act of 1968. To register as a Section 3 business or resident with the City of Saint Paul, complete the section 3 certification form for residents and businesses. If prefer, you may fill out the Section 3 registration in Spanish.

Send completed and signed certification forms, with the appropriate documentation to:

City of Saint Paul 
Department of Human Rights and Equal Economic Opportunity (HREEO) 
Section 3 Unit 
15 Kellogg Boulevard West
280 City Hall
Saint Paul, MN 55102

Section 3 Certified Business Lists

City of Saint Paul HUD Section 3 Business List

The City of Saint Paul Section 3 business list is available online. View the City of Saint Paul HUD Section 3 Business List. The Section 3 program reviews business applications for eligibility for the Section 3 program but does not endorse particular services provided by the businesses. Additionally, a business' eligibility for the program may have expired or changed since the time they were certified with the City. The City's HUD Section 3 program strongly encourages contractors utilizing St. Paul's HUD Section 3 list to perform due diligence by verifying a business' Section 3 status. If you would like a hard copy of the Section 3 Certified Business List, please contact the Section 3 Administrator at Section3Program@ci.stpaul.mn.us or 651-266-8900.

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 Economic Opportunities

Contracting Opportunities

Listed below are construction-related contract opportunities with the City of Saint Paul. If you are interested in learning more about specific contracting or subcontracting opportunities with any of the listed projects, please contact the Project Manager or the Construction Manager listed for the project.

Capacity-Building Opportunities

The City of Saint Paul offers various capacity-building opportunities for Section 3 businesses to help build their business. If you are a current Section 3 business, or if you are considering starting your own business, or if you are a business who may qualify as Section 3, please visit our Capacity-Building Opportunities page for more information on the services the City offers through various highly-regarded community partners.

Resources

Minnesota Business 101: Big Ideas for Small Businesses The Minnesota Department of Employment and Economic Development's (DEED) blog aimed at providing practical guidance for aspiring entrepreneurs and new business owners in Minnesota.

Section 3 Capacity-Building Opportunities

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.

Section 3 Residents: Opportunities and Resources

The City of Saint Paul maintains a list of Section 3 businesses and residents who qualify under Section 3 of the Housing and Urban Development Act of 1968. To register as a Section 3 business or resident with the City of Saint Paul, complete the section 3 certification form for residents and businesses. If prefer, you may fill out the Section 3 registration in Spanish.

Send completed and signed certification forms, with the appropriate documentation to:

City of Saint Paul 
Department of Human Rights and Equal Economic Opportunity (HREEO) 
Section 3 Unit 
15 Kellogg Boulevard West
280 City Hall
Saint Paul, MN 55102

Section 3 Residents: Training Opportunities and Resources

Skills Training: Goodwill/Easter Seals Scholarships

Opportunities are available to Section 3 residents through the Goodwill/Easter Seals Construction Skills Training Program. Section 3 residents who are interested in this program may be eligible to receive supports to go through the program, including:

  • Hand tools and a tool pouch;
  • Work clothes, coat, gloves, boots;
  • Transportation to the training (bus cards)
  • Specialty tools;
  • Protective equipment;
  • Medical needs (for example, prescription glasses);
  • Construction licensing fees;
  • Commercial Driver's License;
  • Securing a driver's license.

More information on Goodwill's Construction Skills Training Program is available here. Please contact Goodwill/Easter Seals at 651-645-1985 with questions.

Tax Incentives

Employers who hire Section 3 residents may be eligible to receive the Work Opportunity Tax Credit (WOTC). This credit reduces an employer's cost of doing business. For a step-by-step guide to earning a tax credit for new hires, view the WOTC Fact Sheet. For more information, visit the WOTC website or call the WOTC Coordinator at 651-259-7507.