Section 3 is a provision of the Housing and Urban Development Act of 1968 that is regulated by the provisions of 24 CFR 75. Section 3 regulations ensure that employment and other economic opportunities generated by HUD financial assistance shall, to the greatest extent feasible, be directed to low- and very low-income persons (Section 3 workers), particularly those who are recipients of government assistance for housing (Targeted Section 3 workers), and to businesses which provide economic opportunities to low- and very low-income persons (Section 3 Businesses), consistent with existing Federal, State, and local laws and regulations.
Section 3 Rule applies to housing rehabilitation, housing construction, and other public construction projects that exceed $200,000 or more of housing and community development financial assistance from one or more HUD programs. Applicability is determined at the project level.
More information can be found in the
City of Knoxville’s Section 3 Plan [PDF].