Section 3

What is Section 3?

Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 that helps foster local economic development, neighborhood economic development improvement, and individual self-sufficiency. This program requires the 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. The City of League City has upcoming construction projects that will be subject to Section 3 requirements.

Section 3 Business Concerns

A Section 3 Business Concern is:

  • Owned by 51% or more by Section 3 Residents
  • Employ at least 30% of employees who qualify as Section 3 Residents (or within 3 years of the date of
    first employment with the business were Section 3 Residents)
  • Commit to subcontract in excess of 25% of the dollar award of all subcontracts to be awarded to
    business concerns that meet one of the first two qualifications

The city will maintain a list of certified Section 3 Business Concerns and notify them about specific Section 3 bid opportunities. Section 3 Business Concerns interested in being included in this list are invited to complete and submit the Section 3 Business Concern Certification Form (PDF) along with required documentation to the city's Section 3 Coordinator.

What is a Section 3 Resident?

Section 3 Residents are either:

  • Public housing residents including persons with disabilities
  • Low income or very low income person(s) who live in the metropolitan statistical area or non-metro
    county area of the project
  • HUD Youthbuild program participants
  • Homeless, defined under McKinney Act (42 U.S.C. 11301 et seq.)

Persons are considered low income if their household incomes do not exceed 80% of the median income for the area. Persons are considered very low income if their household incomes do not exceed 50% of the median income for the area. Refer to the Section 3 Resident Certification Form (PDF) for income limits by household size for Harris and Galveston Counties.

Job Openings

Any job openings related to these construction projects will be posted by the contractors on Work In Texas. Section 3 Residents interested in employment opportunities should register as a job seeker with Work In Texas or contact their local workforce solutions office for assistance. Please also see the Registering and Searching for Job Vacancies for Section 3 Residents (PDF). Section 3 Residents seeking Section 3 hiring preference may also complete and submit the Section 3 Resident Certification Form (PDF) to the city's Section 3 Coordinator. A list of Section 3 residents will be maintained for contractors to use in their hiring processes.