Section 3 - Creating Economic Opportunity

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What is Section 3?

Section 3 is a provision of the U.S. Department of Housing and Urban Development Act of 1968 that promotes local economic development, neighborhood economic improvement, and individual self-sufficiency. The Section 3 program requires that recipients of certain HUD financial assistance, to the greatest extent feasible, provide job training, employment, and contracting opportunities for low- or very-low income residents in connection with projects and activities in their neighborhoods.

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What Programs Are Covered?

Section 3 applies to HUD-funded Public and Indian Housing assistance for development, operating, and modernization expenditures.  Section 3 also applies to certain HUD-funded Housing and Community Development assistance (such as CDBG and HOME programs) for housing rehabilitation, housing construction, and other public construction.

Eligibility Guidelines for Section 3 Preference

Section 3 residents and Section 3 businesses are eligible to receive a Section 3 preference. Qualified residents or businesses seeking a Section 3 preference must certify or submit evidence of qualification.

Who is a Section 3 resident?

A public housing resident or a low to very low income person residing in the City of Charlottesville or the Charlottesville metropolitan area in which the Section 3 covered assistance is expended.

(Note: The Charlottesville metropolitan area includes Albemarle County,VA; Greene County,VA; Fluvanna County,VA; and Nelson County, VA. Residents within the listed counties are offered a preference only when the Section 3 covered assistance is expended within these areas. Preference/priority will be provided to City of Charlottesville residents.)

Residents seeking certification must meet the household income guidelines for a low or very low income person. See CDBG/HOME page for current income limits. 

What is a Section 3 business concern?

A business that:

  • Is 51% or more owned by Section 3 resident(s); or
  • Employs Section 3 residents for 30% of its permanent, full-time employees; or
  • Provides evidence of a commitment to subcontract to Section 3 businesses, 25% or more of the dollar amount of the awarded contract.

If you are a business seeking certification you may register online or via the Section 3 Business Registration Form.  Please Note: Businesses that register that they meet the definition of a Section 3 business will be required to provide verification of their eligibility to the City of Charlottesville at the time of bid/offer/proposal submission.

HUD Section 3 Business Registry 

To search for a self-certified Section 3 business, please visit the HUD website

For more information, contact:

City of Charlottesville
Department of Neighborhood Development Services
City Hall * P.O. Box 911
610 East Market Street
Charlottesville, VA 22902
Phone (434) 970-3182
Fax (434) 970-3359

Related Downloads:
Section 3 Policy
Section 3 FAQs