Section 3 Contractor

A contractor subcontractor of a project receives a contract for 100 000 or more in grant assistance.

Section 3 contractor. Once it is determined that section 3 applies to a project the section 3 requirements apply to all contracts provided that at least 1 of grant funds is being used. Federal state and local programs advocacy groups community and faith based organizations. A section 3 business is not entitled to a contract simply by being listed in the hud section 3 business registry database.

What is section 3. Section 3 clause all contracts with contractors and subcontractors for section 3 covered projects must contain the section 3 contract clause in the contracts of its contractors and subcontractors. It is a means by which hud fosters 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 possible provide training employment contracting and other economic opportunities to low and very low income persons especially recipients of government assistance for housing and to businesses that provide economic opportunities to low and very low income persons. Recipient responsibilities pursuant to section 3 each recipient and their covered contractors subcontractors or subrecipients are required to comply with the requirements of section 3 for newemployment training or contracting opportunities resulting from the expenditure of covered funding. Businesses that self certify their eligibility may receive preference as a section 3 business subject to verification from local recipient agencies or hud.

The section 3 business registry is a listing of firms that have self certified that they meet one of the regulatory definitions of a section 3 business and are included in a searchable online database that can be used by agencies that receive hud funds developers contractors and others to facilitate the award of certain hud funded contracts. From this integral foundation coupled with other resources comes the opportunity for economic advancement and self sufficiency.