Section 3 and Contract Compliance 

The Contract Compliance Unit monitors federal and state prevailing wage requirements, the Minority and Women’s Participation Policy, and Section 3 of the Housing and Urban Development Act of 1968 (Section 3) on Boston Housing Authority (BHA) contracts. Read the BHA Section 3 Policy and the BHA Minority and Women’s Participation Policy.
 

Section 3 Information for Residents

“Section 3” is a federal law designed to promote economic opportunities for low-income public housing and area residents and for businesses that are owned by or employ public housing residents and low-income individuals.
 
Section 3 is part of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701u). The law requires developers and contractors receiving certain federal funds for construction contracts to use their best efforts to hire Section 3 residents as 30% of new hires and to subcontract 10% of the contract value to Section 3 business concerns (or to subcontract 3% of the value of non-construction contracts to Section 3 business concerns).
 
For BHA purposes, a “Section 3 resident” is either a resident of BHA housing or a low-income Boston area resident. For Boston area residents during the fiscal year 2014, earning $47,450 or less for a household of one qualifies as low income ($54,200 for a household of two; $61,000 for a household of three; $67,650 for a household of four, etc.). Additional information about Section 3 is available through the Department of Housing and Urban Development.
 
If you are a BHA resident or program participant interested in finding employment through the Section 3 program, please fill out the Section 3 Resident Application and submit it to the address given below for the Office of Civil Rights. For general questions about Section 3, please call the BHA Section 3 Coordinator at (617) 988-4091.  
 

Information for Businesses 

You are likely to increase your business opportunities by becoming a Section 3 certified business. In 2014, more than $3 million in construction-related subcontracts on BHA projects was projected for Section 3 businesses. 
 
A “Section 3 business concern” is a business entity licensed in Massachusetts which:

• Is 51% or more owned by Section 3 residents; or
• Has a workforce of at least 30% Section 3 residents (or were Section 3 residents within three years of date of first employment with the business) 

If your business fits into one of the categories above, go to www.hud.gov/sec3biz to register your company.