Section 3 requirements
HUD’s Section 3 policy helps ensure that jobs and economic opportunities created by certain HUD funding go to lower income people and the businesses that employ lower income people.
Section 3 Qualification — Businesses
A Section 3 business must meet at least one of these three criteria, and it must be documented for the last six months:
- At least 51% owned and controlled by low- or very-low-income persons
- Over 75% of business labor hours were performed by low-income workers over the prior three-month period
- At least 51% owned and controlled by current public housing tenants or tenants who currently live in housing voucher-assisted housing
To register with KCHA as a Section 3 Business, fill out the Section 3 Business Certification Form. Send the form to section3@kcha.org.
If you are not a Section 3 business, you may still have Section 3 workers, and their hours spent on KCHA contracts can count toward KCHA’s Section 3 goals.
View the full details of HUD’s Section 3 clause and KCHA’s Section 3 contracting requirements.
Section 3 Qualification — Individual
A Section 3 worker is any worker who now, or when hired within the past five years, meets at least one of three criteria:
- The worker’s income for the previous or annualized calendar year is or was below the income limit established by HUD
- The worker is employed by a Section 3 business
- The worker is a YouthBuild participant
A targeted Section 3 worker is a Section 3 worker who also currently meets at least one of three criteria:
- Lives in public housing or voucher-assisted housing where the construction project is taking place
- Lives in other public housing or voucher-assisted housing managed by KCHA
- Lives within one mile of the project site
Please fill out a Section 3 Individual Certification Form for each person who will be working on the contract.
If your KCHA contract includes Section 3 workers or targeted Section 3 Workers, you must file the Section 3 Labor Hours Benchmark Status Report with each billing sent to KCHA.