Section 3 Information

Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 that helps foster local economic development, small business growth, and individual self-sufficiency. Section 3 requires that projects funded by HUD, including projects funded with Community Development Block Grant-Disaster Recovery (CDBG-DR) monies, provide job training, employment, and contracting opportunities to low- and very-low-income residents and local businesses.

Section 3 Reporting for DCA Disaster Recovery and Mitigation Programs

Section 3 requirements apply to a housing rehabilitation, housing construction, or other public construction project funded with CDBG-DR monies. Recipients of CDBG-DR funding administered by DCA’s Division of Disaster Recovery and Mitigation must report information such as the total number of labor hours worked by Section 3 workers on the project.

Information about how to complete a Section 3 report on DCA's Section 3 Vendor Portal is at:

Section 3 Reporting training slide deck

CLICK on the link below to access the Vendor Portal:

Section 3 Vendor Portal

For questions, email Section3Reporting@dca.nj.gov.

 

Information for Workers

A Section 3 worker is any individual who currently fits, or when hired within the past five (5) years fits, at least one of the following categories:

• The worker’s income for the previous or current calendar year is below the HUD income limit.
• The worker is employed by a Section 3 business concern; or
• The worker is a YouthBuild participant.

For more details, refer to the Section 3 brochure for workers and businesses. For questions, email DRM.section3@dca.nj.gov.

Additional resources:

Section 3 current income limits

Section 3 Worker Self-Certification Form-Housing and Community Development

 

Information for Businesses

Businesses can apply for Section 3 certification if they are:

  • 51% owned and controlled by low-income person(s); or
  • 75% of business labor hours are performed by low-income person(s); or
  • 51% owned and controlled by current public housing residents or residents who currently live in Section 8 assisted housing.

If you are interested in receiving Section 3 certification for your business, refer to:

Section 3 job aid for contractors and subcontractors.

Additional resources:

Sample Section 3 Business Certification

Section 3 Business Concern Certification for Contracting Sample Form

 

Minority- and Woman-Owned Business Enterprises

Minority- and Woman-Owned Business Enterprise (M/WBE) is a certificate issued by the State of New Jersey to identify minority and/or women owned businesses or enterprises. This certification may help when obtaining contracts with government entities or as subcontractors to a larger government contract.

Certification as a M/WBE must be completed through the State of New Jersey via:

New Jersey's Business Enterprise Programs - Uniform Certification Service.

For more information about M/WBE and other business certifications, visit business.nj.gov.

 

Training Videos

Section 3 Vendor Report Training


 

Other Resources

Section 3 Resources and Tools - This webpage on the HUD Exchange contains resources and sample tools for implementing Section 3.

Section 3 FAQs

Section 3 Guidebook

   Phone : Constituent Services Office
      (609) 913-4824

  Email
       DRM.section3@dca.nj.gov

  Mail
        Division of Disaster Recovery and Mitigation
        PO Box 823
        101 South Broad Street
        Trenton, NJ 08625-0823