What is Section 3?

What Types of Economic opportunities Are Available Under Section 3?

Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 that helps foster local economic development, neighborhood economic improvement, and individual self-sufficiency. The Section 3 program requires that recipients of certain HUD financial assistance, to the greatest extent feasible, provide job training, employment, and contracting opportunities for low or very low income residents in connection with projects and activities in their neighborhoods. Section 3 is a starting point for people with low or very low incomes to obtain job training, employment, and contracting opportunities.

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Who are Section 3 Workers or Targeted Section 3 Workers?

All current residents of Albuquerque Housing Authority (AHA) public housing, a resident of other public housing projects or Section 8 assisted housing or a YouthBuild participant, qualify as Targeted Section 3 Worker.

Additionally, individuals residing in the Albuquerque Metropolitan Statistical Area (MSA) of Bernalillo, Sandoval, Torrance and Valencia Counties, whose individual income limits (Area Median Income – AMI) set forth below for Bernalillo County (Albuquerque MSA), can also qualify for Section 3 Worker status. Count only the one (1) individual (applicant) source of income in the household.

Eligibility Guideline – 2022 Household Income Limits- Please note that Eligibility for Section 3 certification is based on one (1) individual (resident/applicant) income.

*(AMI amount to change annually, based on federal income data reports)

Income Limit Category One (1) Person
2022 Low (80%) $42,300

AHA Section 3 Definitions for Certification

Eligibility and Certification Guidelines

Any worker who currently fits or when hired within the past five years (effective November 30, 2020, or date of hire if later) meets the criteria to be certified as a Section 3 worker or targeted Section 3 worker through self-certification or employer certification using the forms. Section 3 Explanation and Forms 2022

Section 3 Worker Definition

Income Limit Category One (1) Person Hourly Rate: 2080 Hours Yearly Effective Date
2022 Low (80%) $42,300 $20.34 April 18, 2022-Current
2021 Low (80%) $37,800 $18.17 June 1, 2021-April 17, 2022
2020 Low (80%) $37,750 $18.63 April 1, 2020-May 30, 2021

The Albuquerque, NM MSA contains the following areas: Bernalillo County, NM; Sandoval County, NM; Torrance County, NM; and Valencia County, NM.

Targeted Section 3 Worker Definition (for public housing)

  • Employed by a Section 3 business concern or
  • Currently meets or when hired met at least one of the following categories as documented within the past five years:
    • A resident of public housing; or
    • A resident of other public housing projects or Section 8-assisted housing; or
    • A YouthBuild participant.

Targeted Section 3 Worker Definition (for housing and community development)

  • Employed by a Section 3 business concern or
  • A worker who currently fits or fit when hired at least one of the following categories;
  • Low and very low income workers residing within the neighborhood or service area of the project;
  • A YouthBuild participant.

Section 3 Business Concern Definition

A Section 3 Business Concern meets one of the following criteria (in the last six months):

  • It is at least 51% owned and controlled by low income or very low income persons;
  • Over 75% of the labor hours performed for the business over prior three month period are performed by section 3 workers; or
  • At least 51% owned and controlled by current residents of public housing or Section 8 assisted housing.

The status of the Section 3 worker, Targeted Section 3 worker and Section 3 business concern shall not be negatively affected by a prior arrest or conviction of its owners(s) or employees.

How Can Individuals Find Out More About Section 3?

Please visit HUD website or contact the Fair Housing and Equal Opportunity representative at your nearest HUD Office.

What is Section 3

Section 3 Documents

Section 3 Interest Form