Section 3 / MWSBE Certification
Section 3 Workers and Businesses
Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 that helps foster local economic development, small business growth, and individual self-sufficiency. The Section 3 Program requires that projects funded by HUD provide job training, employment, and contracting opportunities to low- and very-low-income residents and local businesses.
Information for Workers
A Section 3 Worker is any individual who currently fits, or when hired within the past five (5) years fits, at least one of the following categories:
- The worker’s income for the previous or current calendar year is below HUD income limits ; or
- The worker is employed by a Section 3 Business Concern; or
- The worker is a YouthBuild participant.
Information for Businesses
Businesses can apply for Section 3 certification if they are:
- 51% owned and controlled by low-income person(s); or
- 75% of business labor hours are performed by low-income persons; or
- 51% owned and controlled by current public housing residents or residents who currently live in Section 8 assisted housing
If you are interested in receiving Section 3 Certification for your business, get started in the Section 3 Management System . In addition to the main application, you will need to provide documentation about your business. You can find a full list of required documents on the Business Concerns Application Checklist (Español ).
Minority- and Woman-owned Small Business Enterprises (MWSBE)
The City of Houston Office of Business Opportunity oversees the certification process for Minority- and Woman-Owned Small Business Enterprises (MWSBEs). Federal- and local-level requirements for contracting require hiring of MWSBEs as well.
Certification as a MWSBE must be completed through the Office of Business Opportunity. However, the Housing and Community Development Department does have its own requirements for sub-contracting MWSBEs.
Those requirements have been combined with Section 3 guidelines in our Compliance Packets .
Engage to Excel!
HCD recognizes that promoting residents and small businesses to make connections helps open employment, training, and contract opportunities. Our team brings vendors and contractors together each month for a variety of events, both out in the community and at our central office at 2100 Travis. Check out our Events Calendar to learn about which events are coming up.
Key Links and Additional Resources
|Document Name||Applicable to||Last Updated||View|
|Worker Application||Section 3 Workers||10/10/23|
|Worker Directory||Section 3 Workers||11/21/23||View|
|Champion Scorecard||Section 3 Workers||04/05/22|
|Compliance Forms Packet||Section 3 Workers||11/06/23||View|
|Section 3 Worker Application Checklist and FAQs||Section 3 Workers||10/10/23|
|Section 3 Brochure||Section 3 Workers||06/15/22|
|Community Involvement Trifold||All||04/16/21|
|Pre-Award Services Trifold||All||04/20/21|
|Pay or Play Program Trifold||All||04/19/21|
|Portfolio Compliance Trifold||All||04/21/21|
|Document Title||Language||Last Updated||View|
|Contract Compliance Technical Assistance Training Video||English||09/20/2023||View|
|Section 3 Technical Assistance Training Presentation||English||09/26/2023||View|
|Pay or Play Technical Assistance Training Presentation||English||09/26/2023||View|
|MWSBE Technical Assistance Training Presentation||English||09/26/2023||View|
|Pre Award Services Technical Assistance Training Presentation||English||09/26/2023||View|
|Portfolio Compliance Technical Assistance Training Presentation||English||04/26/2023||View|