Section 3

HUD requires that CDBG-DR/MIT/MIT-funded programs comply with Section 3 requirements. Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 that promotes economic opportunities for low-income individuals and businesses residing in areas where HUD financial assistance is provided for housing and community development projects. As of Nov. 30, 2020, CDBG-DR/MIT programs are required to adhere to the reporting and compliance requirements outlined in CPD Notice 21-09 and 24 CFR Part 75.

Section 3 requirements apply to all CDBG-DR/MIT-funded housing rehabilitation, reconstruction, elevation or new construction, and any other public construction project that has a total project cost of $200,000 or more. The project includes the site or sites together with any building(s) and improvements located on the site(s) that are under common ownership, management and financing. Section 3 applies to the entire project even when the CDBG-DR/MIT funds are only a portion of the total funding.  

In accordance with 24 CFR 75.3(b), Section 3 requirements do not apply to material supply contracts. 

Section 3 Documents -

• Escambia County Section 3 Program Guidelines_6.27.24
• Escambia County Section 3 Tracking Report (HUD-4737A)
• Escambia County Section 3 Contract Clause_CDBG-DR
• Section-3-Business-Concern-Certification-Sample-Form
• 4736C_Section 3 Worker Self-Certification-Housing and Community Development
• 4736A_Section 3 Housing and Community Development Employer Certification Form
• Section-3-Brochure-for-Workers-and-Businesses
• Section-3-Brochure-for-Workers-and-Businesses-Spanish
• Section-3-Job-Aid-for-Contractors-and-Subcontractors-HCD