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General Definitions


The applicable definitions for PHA's Section 3 program are the same as those set out in HUD's regulations at 24 C.F.R 135. Some of the more relevant terms considered in PHA's administration of the policy are:

Employment Opportunities Generated By Section 3 Covered Assistance. All employment opportunities generated by the expenditure of Section 3 covered public and Indian housing assistance (i.e., operating assistance, development assistance and modernization assistance, as described in 24 C.F.R. § 135.3(a)(1)).

Community. Area within one-half (1/2) mile radius of propose Section 3 Covered Activity.

Housing And Community Development Assistance. Any financial assistance provided or otherwise made available through a HUD housing or community development program through any grant, loan, loan guarantee, cooperative agreement, or contract, and includes community development funds in the form of community development block grants, and loans guaranteed under Section 108 of the Housing and Community Developments Act of 1974, as amended. Housing and Community Development Assistance does not include financial assistance provided through a contract of insurance or guaranty.

New Hires. Full-time employees hired for permanent, temporary, or seasonal employment opportunities. Building trades personnel are new hires at the start of each construction project.

Other HUD Programs. HUD programs, other than HUD public and Indian housing programs that provide housing and community development assistance for Section 3 Covered Projects.

PHA Pre-Apprenticeship Program. Programs sponsored by a PHA in which its residents participate in union-exam preparation course in construction skills.

Resident Owned Business (Rob). A business concern (a) at least 51% owned by one or more public housing residents; and (b) whose management and daily business operations are controlled by one or more such individuals.

Section 3. Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. § 1701u).

Section 3 Business Concern. A Section 3 Business Concern is a business entity formed in accordance with State law, and which is licensed under State, county or municipal law to engage in the type of business activity for which it was formed:

  • That is fifty-one (51 % or more owned by Section 3 Residents; or
  • Whose permanent, full-time employees include persons, at least 30% of whom are currently Section 3 Residents, or within three years of the date of first 3 employment with the business concern were Section 3 Residents; or
  • That provides evidence of a commitment to subcontract in excess of 25% of the dollar award of all subcontracts to be awarded to business concerns that meet the qualifications set forth in paragraphs (1) or (2) in this definition of "Section 3 Business Concern."

Section 3 Clause. The contract provisions set forth in 24 C.F.R § 135.38.

Section 3 Covered Activity. Any activity which is funded by Section 3 Covered Assistance including public a housing assistance.

Section 3 Covered Assistance.

  • Public and Indian housing development assistance provided pursuant to Sections 5, 9, and/or 14 of the 1937 Act;
  • Assistance provided under any HUD housing or community development program that is expended for work arising in connection with:
    • Housing rehabilitation (including reduction and abatement of lead- based paint hazards, but excluding routine maintenance, repair and replacement);
    • Housing construction; or
    • Other public construction project (which includes other buildings or improvements, regardless of ownership).

Section 3 Covered Contract. A contract or subcontract (including a professional service contract) awarded by a recipient or contractor for work generated by the expenditure of Section 3 Covered Assistance, or for work arising in connection with a Section 3 Covered Project. "Section 3 Covered Contracts" do not include contracts awarded under HUD's procurement program, which are governed by the Federal Acquisition Regulation System (see 48 C.F.R. Chapter 1). "Section 3 Covered Contracts" also do not include contracts for the purchase of supplies and materials. However, whenever a contract for materials includes the installation of the materials, the contract constitutes a Section 3 Covered Contract. For example, a contract for the purchase and installation of a furnace would be a Section 3 Covered Contract because the contract is for work (i.e., the installation of the furnace) and thus is covered by Section 3.

Section 3 Covered Projects. The construction, reconstruction, conversion or rehabilitation of housing (including reduction and abatement of lead-based paint hazards), other public construction which includes buildings or improvements (regardless of ownership) assisted with housing or community development assistance.

Section 3 Joint Venture. An association of business concerns, one of which qualifies as a Section 3 Business Concern, formed by written joint venture agreement to engage in and carry out a specific business venture for which purpose the business concerns combine their efforts, resources, and skills for joint profit, but not necessarily on a continuing or permanent basis for conducting business generally, and for which the Section 3 Business Concern.