Section 3 Business Concern Information
List of Section 3 Business Concerns
Please see below on how to register as a Section 3 Business Concern
Section 3 New Rule
On September 29, 2020, HUD published the Section 3 Final Rule with an effective date of November 30, 2020.
Section 3 is a provision of the Housing and Urban Development Act of 1968. The purpose of Section 3 is to ensure that economic opportunities, most importantly employment, generated by certain HUD financial assistance shall be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing or residents of the community in which the Federal assistance is spent.
HUD Section 3 links:
Section 3 Minimum Numerical Goals:
A NYCHA contractor may demonstrate compliance with Section 3 as follows:
- Twenty-five (25) percent or more of the total number of labor hours worked by all workers employed with public housing financial assistance in the PHA’s or other recipient’s fiscal year are Section 3 workers; and
- Of which five (5) percent or more of the total number of labor hours worked by all workers employed with public housing financial assistance in the PHA’s or other recipient’s fiscal year are Targeted Section 3 workers
What is a Section 3 Worker?
Section 3 worker is any worker who currently fits or when hired within the past 5 years fit at least one of the following categories, as documented:
- The worker’s income for the previous or annualized calendar year is below the income limit established by HUD; or
- The worker is employed by a Section 3 business concern; or
- The worker is a YouthBuild participant
What is a Targeted Section 3 Worker?
For public housing financial assistance projects, HUD defines a Targeted Section 3 worker as a Section 3 worker who is also:
- A worker employed by a Section 3 business concern; or
- A worker who is currently or who was when hired by the worker’s current employer, a resident in a public housing project or Section 8-assisted housing ; or
- A resident of other projects managed by the PHA that is expending assistance; or
- A current YouthBuild participant
What is a Section 3 Business Concern?
A Section 3 business concern is a business concern meeting at least one of the following criteria, documented within the last six-month period:
- It is a business at least 51% owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing; or
- It is at least 51% owned and controlled by low- or very low-income persons; or
- Over 75% of the labor hours performed for the business over the prior three-month period are performed by Section 3 workers
What Is A Registered Section 3 Business Concern?
- A Registered Section 3 Business Concern is a Section 3 Business Concern that has registered with NYCHA, through the submission of this completed Self-Certification Form.
- Please be advised that by registering as a “Section 3 Business Concern,” your business and the information provided herein will be added to a publicly accessible database of NYCHA recognized Section 3 Businesses Concerns that NYCHA and/or its contractors/vendors can access to fulfill the Section 3 Business Concern provisions in NYCHA’s contracts with its contractors/vendors. By registering as a Section 3 Business Concern your business may be subject to audits including by NYCHA and the United States Department of Housing and Urban Development.
- While registering as a Section 3 Business Concern may give your business certain preferences, such registration is not a guarantee of any such preferences or that your business will be awarded any contracts or subcontracts by NYCHA or its contractors/vendors.
- This registration will be effective for three years from the date that your business is posted in the publicly accessible database identified above. NYCHA, however, reserves the right to request your business to re-register as a Section 3 Business Concern at any time. Failure to re-register as a Section 3 Business Concern, either after the expiration of the three year period or upon NYCHA’s request, will ultimately result in the removal of your business from the database.
Click here to determine if you or your employees qualify as low-income. Refer to the individual income chart established annually by HUD.
How can I Register as Section 3 Business Concern and Do Business with NYCHA?
1. If your company has never done business with NYCHA, you must first register your
company with NYCHA through iSupplier. Click here for New Registration.
a. After you register in iSupplier, please complete the Section 3 Business Concern
Registration when you log in.
2. If you have previously done business with NYCHA, click here to register as a Section 3
Please note: NYCHA’s Section 3 Business Concern registration is currently being updated to include the new Section 3 Business Concern criteria as defined by HUD and mentioned above in the "What is a Section 3 Business Concern" section.
What is the Section 3 Business Registry?
The Section 3 Business Registry is a listing of firms that have self-certified that they meet one of the regulatory definitions of a Section 3 business. This publically published list can be used by agencies that receive HUD funds, developers, contractors, and others to facilitate the award of certain HUD-funded contracts.
This registry is a helpful tool to assist recipients of HUD funding (e.g., Public Housing Agencies, local units of government, property owners, etc), developers, and others locate Section 3 businesses within their community. It also enables HUD grantees to meet their Section 3 obligations by reducing some of the burden associated with locating eligible businesses.
It is important to note that Section 3 businesses are not entitled to receive contracts simply by being listed in NYCHA’s Self-Certified Section 3 Business Concerns Registry database. Eligible businesses may need to demonstrate that they are responsible and have the ability to perform successfully under the terms and conditions of proposed contracts. While NYCHA maintains the Business Registry database, it has not verified the information submitted by the businesses and does not endorse the services they provide. Accordingly, it is recommended that users perform due diligence before awarding contracts to firms that have self-certified on this registry by ensuring that they meet the definition of a Section3 business concern as defined above.
List of Section 3 Business Concerns