Section 3

What is Section 3?

Section 3 is a part of the U.S. Department of Housing and Urban Development (HUD) Act of 1968. This Act and HUD Regulation 24 CFR Part 135 ensures that employment and other economic opportunities generated by certain HUD financial assistance shall be directed to public housing residents, individuals of low to very low income, and to business concerns that provide economic opportunities to these individuals.

Who qualifies as a Section 3 resident?

A person must meet one of the following definitions to qualify as a Section 3 resident. This person must be:

A public housing resident;or an individual who resides in the metropolitan area where the Section 3 assistance is being expended and who is low income; or very low income person seeking the training and employment preference provided by Section 3; a person receiving unemployment benefits or other government subsidies; returning veterans, recent college or vocational school graduates, women in non-traditional careers.

What defines a person of low and very low income?

A person of low-income, as defined in Section 3(b)(2) of the 1937 Housing Act (42 USC 1437a (b)(2)) and 24 Code of Federal Regulations (CFR) part 135 of HUD regulations, means families (including single persons) whose incomes do not exceed 80% of the median income for the area.

A person of very low-income, as defined in Section 3(b)(2) of the 1937 Housing Act (42 USC 1437a (b)(2)) and 24 Code of Federal Regulations (CFR) part 135 of HUD regulations, means families (including single persons) whose incomes do not exceed 50% of the median income for the area.

CHART 1

# IN HOUSEHOLD	1 PERSON	2 PERSONS	3 PERSONS	4 PERSONS	5 PERSONS	6 PERSONS	7 PERSONS	8 PERSONS
Very Low-Income	$22,500	$25,350	$28,500	$31,650	$34,200	$36,750	$39,250	$41,800
Low-Income	$35,500	$40,550	$45,600	$50,650	$54,750	$58,800	$62,850	$66,900

Note: 2012 Median Family Income for Ohio: $63,300 www.huduser.org

If you do not wish to use employees’ annual salaries to determine whether they meet criteria as a Section 3 resident, you can use their hourly wages to determine their eligibility, also.

CHART 2

# IN HOUSEHOLD	1 PERSON	2 PERSONS	3 PERSONS	4 PERSONS	5 PERSONS	6 PERSONS	7 PERSONS	8 PERSONS
VERY LOW-INCOME	$10.68	$12.19	$13.70	$15.22	$16.44	$17.67	$18.87	$20.10
LOW-INCOME	$17.07	$19.49	$21.92	$24.35	$26.32	$28.27	$30.22	$32.16

Note: Hourly rates were calculated by dividing each of the salaries in Chart 1 by the total number of work hours in a year (i.e.$63,300/2,080=$30.43)

In order to determine the number of members an employee has within their household, you may utilize personnel records such as tax records and/or other payroll data (i.e., state and federal exemptions), insurance/beneficiary records or emergency contact persons provided by the employee.

What is the definition of a Section 3 business concern?

A Section 3 Business Concern is a business concern:

When 51% or more is owned by a Section 3 resident; or Whose permanent, full-time employees include persons, at least 30% of whom are currently Section 3 residents, or within 3 years of the date of the first employment with the business concern have been Section 3 residents; or that provides evidence of a commitment to subcontract in excess of 25% of the dollar award of all subcontracts to a business concern that meets the qualifications in paragraph 1) or 2) above.

When it is formed as a part of aSection 3 joint venture?

In this venture a Section 3 business concern should:

Be responsible for a clearly defined portion of the work to be performed and hold management responsibilities; perform at least 25 percent of the work and is contractually entitled to compensation proportionate to its work.

APPLICATION PROCESS FOR SECTION 3 RESIDENTS:

Please fill out Section 3 Application to participate in Section 3 program. Upon completion, send an electronic copy to bmccorry@gdpm.org

Click to download: Assessment of Experience & Skills for Participation

To complete the application process please fill out the following forms:

Section 3 Resident Preference Claim Form

Section 3 Resident or Employee Household Income Certification

You can mail or fax it to the address below:

Greater Dayton Premier Management

Attn: Section 3 Coordinator

400 Wayne Ave.

Dayton, Ohio 45410

Fax (937) 910-7689

Please review the Frequently Asked Questions document and Section 3 Resident Letter to learn more about the Section 3 program for residents.

Click to download: Frequently asked Questions & Sec 3 Resident Letter

For questions about this application or Section 3 program please dial (937) 910-7520

APPLICATION PROCESS FOR SECTION 3 BUSINESS CONCERNS

Please fill out Section 3 Business Certification Form to participate in Section 3 program. Upon completion, please send the electronic copy to compliance@gdpm.org. You may mail or fax it to the address below to the attention of Compliance Department.

Click to download: Section 3 Business Concern Application

Greater Dayton Premier Management

Attn.: Compliance Department

400 Wayne Ave.

Dayton, Ohio 45410

Fax (937) 910-7689

To learn more about Section 3 program for businesses. Please download and review