Houston Area Urban Community Development Corporation (HAUCDC) has received certification from the City of Houston Housing & Community Development Department as a Section 3 Business Concern.  

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The Section 3 program is a provision of the Housing and Urban Development Act of 1968.  The purpose of Section 3 is to ensure that preference for employment, training and contracting opportunities generated from the expenditure of certain HUD funds is directed to local low- and very low-income persons, particularly those who receive federal housing assistance, and business that are owned by or substantially employ such persons.

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Section 3 businesses are those that can provide evidence of meeting one of the following three criteria:

1. 51 percent or more owned by Section 3 residents; or

2.  At least 30 percent of its full time employees include persons that are currently Section 3 residents, or were Section 3 residents within three years of the date of first hire; or

3. Provides evidence, as required, of a commitment to subcontract in excess of 25 percent of the dollar award of all subcontracts to businesses that meet the qualifications of a) or b) above.

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Recently HAUCDC has created an in-house program to assist subcontractors with capacity building.  The Section 3 designation has allowed HAUCDC to assist subcontractors with documentation for federal requirements and to strengthen financial capacity in the development of affordable housing in Houston. HAUCDC currently receives no federal funds but participates in this program because it is the right thing to do to promote economic and community development in underserved neighborhoods.

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To search the HUD database for self-certified businesses that meet the definition of a Section 3 Business, please visit: www.hud.gov.Sec3Biz. The Section 3 Business Directory for the City of Houston is available online at www.houstontx.gov/housing/compliance.html or contact HAUCDC at www.haucdc.org