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Section 3 Policy


The Hot Springs Housing Authority (HSHA) is committed to helping the residents of its public housing communities achieve their goals of self-sufficiency by providing opportunities for training and employment. HSHA provides employment opportunities on construction projects by encouraging its contractors to hire qualified residents of HSHA communities, connecting residents to job training and placement activities, and providing program coordination that facilitates economic opportunities to residents. HSHA also provides employment opportunities by hiring qualified residents of HSHA communities for available HSHA positions.

Section 3 of the Housing and Urban Development Act of 1968, as amended by the Housing and Community Development Act of 1994, requires that, to the greatest extent feasible, employment and other economic opportunities generated by HUD funds be directed to low- and very low-income residents. 24 CFR Part 135 establishes the standards and procedures to be followed by Public Housing Authorities in order to ensure that the requirements of Section 3 are met.

In order to be considered by HUD to be in compliance with the provisions of 24 CFR Section 135, HSHA will take four concurrent courses of action. These actions are as follows:

  • HSHA will formalize recruiting and hiring policies and practices to the greatest extent feasible to provide opportunities to ensure that 30% of the aggregate number of new hires each year at HSHA to be qualifying public housing residents or other low income metropolitan statistical area (MSA) residents.
  • HSHA will establish a goal that all contractors and subcontractors, to the greatest extent feasible provide opportunities for training and employment for qualifying Section 3 residents for a least 30% of the new positions created as a result of contracts with HSHA.
  • HSHA will establish a goal that it will make best efforts to ensure that 10% of the total dollar amount of contracts for construction, repair and rehabilitation be awarded to the greatest extent feasible to qualifying Section 3 business concerns and to the greatest extent feasible make best efforts that 3% of the total dollar amount of all other HSHA contracts are awarded to qualifying Section 3 business concerns.
  • HSHA to the greatest extent feasible will make best efforts to implement programs to ensure that there is a ready pool of public housing residents trained to fill the positions offered by the HSHA, its contractors or subcontractors. Such programs will be geared to ensure that residents will meet the minimum requirements, i.e. valid driving license, high school diploma or equivalent, drug-free workplace requirement, and criminal background checks, for HSHA and contractor employment positions. HSHA will make best efforts to assist those residents with obtaining adequate support services such as day care and transportation. It will also ensure, the greatest extent feasible that residents of HSHA communities are aware of opportunities as they become available and that contracts know how to reach the ready pool of potential employees from HSHA communities.

Policy Contents

General Definitions

Section 8 Act of the Housing and Urban Development Act of 1968

Outreach of Recruitment of Qualified Residents and Businesses

Self-Sufficiency, Training, and Employment Opportunities

Section 3 Hiring Compliance

Procurement and Contracting

Monitoring Section 3 Compliance

Protest and Compliant Processing