Section 3

​​​​​​​​​​​​​​​​​​​The Section 3 requirements apply to job training, employment, contracting and subcontracting, and other econominc opportunities arising from the use of certain HUD funds on construction and rehabilitation projects.

To the greatest extent possible, Housing and Neighborhood Preservation and its contractors and subcontractors will ensure that job training, employment, and contracting and subcontracting opportunities are directed to low- or very-low income residents in connection with projects and activities in their neighborhoods.

​​​Learn more about Section 3. See § 135.38 Section 3 clause.  

 Residents

You may qualify as a Section 3 Resident if you live in government-assisted housing, hold a Section 8 Voucher, or if your household income meets or is below HUD's income limits.

HUD Income Limits

Persons in Household 80% of Median Income
(Low InCOME) 
50% of Median Income
(Very Low Income) 
1 $39,500 $24,700
2 $45,150 $28,200
3 $50,800 ​ $31,750
4 $56,400 $35,250
5 $60,950 $38,100
6 $65,450 $40,900
7 $69,950 $43,750
8 $74,450 $46,550

​Effective March 28, 2016

 Business Concern

​A Section 3 Business Concern is a local business entity formed in accordance with State law, and which is licensed under State, county or municipal law to engage in the type of business activity for which it was formed, and which meets one of three definitions:

Ownership

​A business qualifies as a Section 3 Business if it is 51% or more owned by Section 3 Residents.

Workforce

A business qualifies as a Section 3 Business if it employs Section 3 Residents for at least 30 percent of its full-time, permanent staff.

Subcontracting Commitment

A business qualifies as a Section 3 Business if it is a business that provides evidence of a commitment to subcontract 25% or more of the total dollar amount of contracts it is awarded to other Section 3 Businesses.

You can register your business or search for a Section 3 Business​ on HUD's website.

 Contractors/Developers/Recipients

​For more information regarding Section 3 requirements, see Section 3 Compliance Policy Handbook for Developers and Contractors​​​​.  For compliance with Section 3 Plan, see Mandatory Section 3 Solicitation Package (Pages 25-40) and complete Exhibits A, B and C.
For Recipient/Developer/Contractor compliance with Section 3 monthly reporting requirements, see Pay Period and Monthly Reporting Requirements (Pages 41-47).  Recipient/Developer/Contractor shall at the end of each month (MONTH) and for each Payment Release Request (PAY PERIOD), submit Exhibit D – New Hires Section 3 Monthly Compliance Form​​ and Exhibit E – Section 3 Form. Other documentation, Exhibit B – Section 3 Certification and Action Plan, Exhibit C – Section 3 Self-Certification and Skills Data Form and Exhibit F – Section 3 Resident Interview, Application and New Hire List​​, shall be submitted as per occurrence. Please click on required forms, complete and submit via mail, email or hand deliver to the designated DHNP Section 3 Compliance Manager.

Submission Instructions

Deadlines

Submit your monthly documentation by the 5th day of the following month or within 5 days of the end of the reporting period. 

Mailing Instructions

Email Lanitha Hudson at lhudson@vbgov.com, or mail to:

City of Virginia Beach
Department of Housing and Neighborhood Preservation
Attn: Lanitha Hudson, Housing Program Coordinator
Section 3 Compliance Manager
2408 Courthouse Drive – Building 21
Virginia Beach, VA 23456

Request for Payment (Pay Period) reports shall be submitted along with each Payment Release Request.
Contact Information