Section 3 Job Creation
Visit our Training and Workshops page for various presentations and workshops. For grantees needing technical assistance on any of the templates or forms, it is recommended to submit electronic versions to firstname.lastname@example.org.
Community Development Block Grants (CDBG) provided in whole or in part with U.S. Department of Housing and Urban Development (HUD) funds need to comply with the Section 3 provision of the Housing and Community Development Act (HCDA) of 1968. Section 3 is a provision that helps foster local economic development, neighborhood economic improvement, and individual self-sufficiency. Office of Community Investment (CI) grantees need to provide, to the greatest extent feasible, job training, employment, and contracting opportunities generated because of CDBG covered projects, to low and very-low income residents in connection with projects and activities in their neighborhoods.
The Section 3 regulations established thresholds and goals at 24 CFR 135.30:
- 30 % of the aggregate number of new hires shall be Section 3 residents
- 10 % of the total dollar amount of all covered construction shall be awarded to Section 3 business concerns.
- 3 % of the total dollar amount of all covered non-construction contracts shall be awarded to Section 3 business concerns.
These numerical goals are minimum targets that must be reached in order for CI to consider a recipient in compliance. Grantees and their contractors must adequately document all efforts taken to comply with the requirements of Section 3, and explain why despite their efforts ―to the greatest extent feasible ― the minimum numerical goals were not met.
New Section 3 Handbook
A supplemental technical assistance guide for grantee compliance with Section 3 is now available.
CI Section 3 Technical Assistance Handbook 08/2012
Required Forms for Grantees
Every grantee needs to adopt a Section 3 Plan. A recommended template is provided below by the Office of Community Investment (CI). Please note that there is no prior approval of the above documents by Compliance Staff before the local government adopts the plan. However, if technical assistance is needed, please email email@example.com.
Section 3 Plan New 8/2012- Effective for 2012 Grantees
All grantee public notices need to have a limited English proficiency (LEP) phrase for the public to request translation or interpretation services concerning the information in the notice. All contracts must include the Section 3 clause found at 24 CFR 135.38. All grantees must submit the Section 3 report using HUD Form 60002 as part of the Annual Performance Report (APR) process.
LEP Phrase for Public Notices
Section 3 Clause
HUD Form 60002
Section 3 Business Certification
CI has developed a database in which businesses can be made aware of opportunities in local areas. To become a certified Section 3 Business, businesses must complete CI self-certification form. Please mail the certification forms to our office.
Self-Certification for Section 3 Business Concern
Registration for Section 3 Business Concern Listserv
Section 3 Coordinators
CI has a database for Section 3 Coordinators that are located across the state of North Carolina. The goal is to inform these coordinators about economic opportunities when CDBG funds are being expended in local areas. Please email a completed registration form to firstname.lastname@example.org if you are interested in learning more about these opportunities for Section 3 qualified residents and businesses from your area, and if you would like to be added to our listserv.
Grantees should submit bid documents to the North Carolina Interactive Purchasing System (IPS) as well as emailing them to email@example.com so they can be sent out on our Section 3 listservs.
Section 3 Complaints
Any Section 3 Resident or Section 3 Business (or authorized representative) seeking employment, training, or contracting opportunities generated by Section 3 covered assistance may file a complaint using HUD Form 958, available on HUD’s website. Effective November 2007, Section 3 complaints must be filed at the appropriate HUD Fair Housing and Equal Opportunity Regional Office where the violation occurred.
Complainants can also visit the U.S. Equal Employment Opportunity Commission or the U.S. Department of Labor Office of Federal Contract Compliance Programs.
Section 3 Employment Goals Plan
Section 3 Resident Concern Self-Certification (1)
Section 3 Resident Self-Certification (2)
Section 3 Business Certification
Section 3 Business and Employment Notice
Bidders Proposed Section 3 Contract-Subcontractors
Contractors Section 3 Business Utilization Report
Bidders Section 3 Estimated New Hires
Contractor Section 3 New Hires Report
CDBG Contract and Subcontractor Activity Report
Section 3 Business Determination of Classification
Section 3 Plan Statement of Commitment
Section 3 Questionnaire for Grantees and Contractors
Ways to Meet Your Section 3 Employment Goal
Training Sherwin Williams Flyer English/Spanish
Visible Signs at the Project Site