The U.S. Department of Housing and Urban Development (HUD)is expanding a program aimed at low-income workers, providing business that hire such workers with opportunities to work on HUD contracts.

Called “Section 3” business, in order to be eligible for the program, the firms must be either majority-owned by residents of public housing or persons whose income meets HUD’s definition of low-income (i.e. Section 3 residents); or have 30 percent or more full-time employees who are Section 3 housing residents; or pledge to award 25 percent or more of its subcontracts to businesses that meet those qualifications.

In addition to changes to Section 3 requirements, HUD Secretary Julián Castro also announced the launch of a National Section 3 Business Registry. The registry is a searchable online database that local housing authorities, government agencies and contractors can use to find firms that are self-certified as employing at least 30 percent public housing residents or low-income workers.

“All Americans should have the chance to contribute to the development and growth of their own communities,” Castro said in a statement. “These Section 3 initiatives will connect more hard-working folks and small businesses to local economic opportunities, giving them new tools to secure a more prosperous future.”

From 2009-2014, based on data reported by public housing authorities and HUD modeling, approximately 170,000 jobs were created by HUD for eligible low-income workers through this program. More than $5 billion in HUD-funded contracts has been directed to Section 3 businesses since 2009. While businesses are only required to hire 30 percent low-income workers, that goal has been exceeded nationally. About 50 percent of new hires for HUD-funded contracts are low-income workers or public housing residents.

Expanded HUD Program Aims At Low-Income Workers

by Banker & Tradesman time to read: 1 min
0