Section 3 Information / Certified Businesses

Housing and Neighborhood Development Director

Becky Wade
bwade@knoxvilletn.gov
(865) 215-2865

400 Main St., Room 532
Knoxville, TN 37902

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Section 3 is a provision of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u and 24CFR Part 135) that helps foster local economic development, neighborhood economic improvement, and individual self-sufficiency. The Section 3 program requires that recipients of certain U.S. Department of Housing and Urban Development (HUD) financial assistance, to the greatest extent feasible, provide job training, employment, and contracting opportunities for low-or very-low income residents (regardless of race or gender) in connection with projects and activities in their neighborhoods. 

All projects/activities involving housing construction, demolition, rehabilitation, or other public construction - i.e., roads, sewers, community centers, etc. that are completed with covered funding are subject to the requirements of Section 3. Recipients of HUD financial assistance must attempt to reach the Section 3 minimum numerical goals by: (1) Awarding 10 percent of the total dollar amount of all covered construction contracts to Section 3 businesses; and (2) Hiring Section 3 residents for 30 percent of new employment opportunities. 

Section 3 Residents are public housing residents or persons who live in the area where a HUD-assisted project is located and who have a household income that falls below HUD's income limits. 

A Section 3 Business Concern is a business that is: (a) 51 percent or more owned by a Section 3 resident or (b) Employs Section 3 residents for at 30 percent of its full-time, permanent staff; or (c) Provides evidence of a commitment to subcontract to Section 3 business concerns, 25 percent or more of the dollar amount of the awarded contract. To register as a Section 3 business or to find other Section 3 businesses, see HUD's Section 3 Business Registry.  City staff will verify Section 3 status using this tool.