Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968. Section 3 requires recipients of certain HUD financial assistance to direct employment and contracting opportunities to low and very-low income persons and businesses residing in the community, where the project is located, to the greatest extent feasible.

Section 3 policies apply to Portland Housing Bureau (PHB) projects and situations as indicated below:

• All construction projects for which the amount of HUD sourced assistance exceeds $200,000; and
• All contractor/subcontractor situations where the contract or subcontract exceeds $100,000 with HUD sourced funds.

Who are Section 3 Residents?

• Residents of Public and Indian Housing; or
• Persons who live in the Portland metropolitan area or nonmetropolitan county and who earn 80% or less of the area median family income, based on household size.

What is a Section 3 Business Concern?  A business that:

• Is 51% owned by Section 3 Residents; or
• Employs Section 3 Residents, for at least 30% of its full-time, permanent staff; or
• Provides evidence of commitment to subcontract 25% or more of the dollar amount of the awarded contract to Section 3 Business

To search for Section 3 Businesses, please visit our Contract Compliance Reporting System.

Questions? Contact Cathleen Massier at 503-823-6888.