Section 3

What is Section 3?

This program refers to Section 3 of the of the Housing and Urban Development Act of 1968.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, be directed towards low and very low income persons.

  • Construction projects that are financed in whole or in part by federal HUD funds are subject to Section 3 subcontracting requirements.
  • Provides local eligible residents and businesses an opportunity to participate in government funded housing construction projects.

Who are Section 3 residents?

Residents of public housing or low-income persons who live in the greater metropolitan area in which a HUD-assisted project is located.

What is a Section 3 business?  
A business that:

  • Is owned by Section 3 residents; or
  • Employs Section 3 residents in full-time positions (30% or more of employees); or
  • Subcontracts with businesses (at least 25%) which provide economic development opportunities to low-income persons.

Who will award the economic opportunities?

Recipients of HUD financial assistance and their contractors and subcontractors are required to provide economic opportunities to the greatest extent feasible, consistent with existing Federal, State, and local laws and regulations.       

How does a contractor locate Section 3 businesses or residents to work for them?

It is the responsibility of the contractor on the project to locate Section 3 eligible participants. A contractor can do so by:

1. Utilizing the Housing and Urban Development (HUD)  Section 3 Business Registry.

2. By recruiting in the neighborhood and/or public housing developments to inform residents about available training and job opportunities.

3. By posting signs, distributing flyers, placing ads, contacting residents, community development, and employment organizations to find workers.

4. Contacting the Housing Authority of Winston Salem (HAWS) to access their Section 3 Contractor list. These contractors and/or individuals regularly work on HAWS projects. Please call the Section 3 Compliance Manager at  (336) 917-6089.

5. Contact the City of Winston Salem M/WBE Coordinator at (336) 734-1262.

Examples of Section 3 opportunities:


Accounting, Bookkeeping, Word processing, Research, Payroll, Purchasing


Landscaping, Catering, Carpet installation, Manufacturing, Printing, Janitorial, Transportation, Appliance repair


Architecture, Surveying, Electrical, Cement/masonry, Heating/air, Fencing, Tile setting, Painting, Carpentry, Bricklaying, Plastering, Demolition, Ironworks

Goals and Section 3 Compliance

Compliance with Section 3 goals may be accomplished by new employment opportunities (full-time, part-time, or seasonal), training opportunities, or by contracting opportunities for Section 3 businesses and individuals. Please contact us for more information at 336-734-1262.

How does Section 3 differ from the Minority and Women-Owned Business Enterprise program?

Section 3 is both race and gender neutral. The preferences provided under this regulation are based on income-level and location only. Section 3 regulations were designed to encourage recipients of HUD funding to direct new employment, training, and contracting opportunities to particular residents and businesses, regardless of race and/or gender.

Who receives priority under Section 3?

For contracting: Businesses that meet the definition of a Section 3 Business Concern.

For training and employment: Persons in public and assisted housing, persons in the area where the HUD financial assistance is spent, participants in HUD Youthbuild programs.



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