Section 3 Program

As a recipient of U.S. Department of Housing and Urban Development (HUD) funding, OED is committed to extending economic prosperity opportunities throughout the greater community, as required under the HUD Section 3 Program. The federal program helps foster local economic development, neighborhood economic improvement and individual self-sufficiency. The Section 3 program requires that recipients of HUD financial assistance (including contractors and subcontractors), to the greatest extent feasible, provide job training, employment, and contracting opportunities for low- or very-low income residents and businesses in connection with projects and activities in their neighborhoods.

HUD funding streams received by the City and County of Denver that are impacted by Section 3 include Community Development Block Grant (CDBG), HOME and Neighborhood Stabilization Program (NSP).

What projects are affected by Section 3?
CDBG, HOME and NSP funded projects in Denver must adhere to Section 3 if the projects require:

  • Housing construction;
  • Housing rehabilitation, including reduction of lead-based paint hazards; or
  • Other public construction projects such as street repair, sewage line repair or installation, other building improvements, etc.

 

What does the term “Section 3 resident” mean?
A "Section 3 resident" is:  

  • A public housing resident;
  • A low- or very low-income person residing in the Denver area.

What does the term “Section 3 business concern” mean?
“Section 3 business concern” is a business that can provide evidence that it meets one of the following criteria:

  • 51% or more owned by Section 3 residents; or
  • At least 30% 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
  • Provides evidence, as required, of a commitment to subcontract in excess of 25% of the dollar award of all subcontracts to Section 3 businesses that meet one of the first two qualifications above.

Why certify as a Section 3 Resident or Section 3 Business?
Certification of Section 3 residents and business concerns is a means to extend employment, training and contract/business opportunities.

Certification as a Section 3 resident can provide access to new employment opportunities. Certified Section 3 residents receive instant job notifications through the Connecting Colorado state employment database, as well as access to trainings offered by the Denver Workforce Centers

Certification as a Section 3 business concern allows establishments to take advantage of business opportunities that are generated by certain types of HUD funding.  

For more information
To learn more about Denver’s administration of the HUD Section 3 program and the certification process, please contact:

Nicol Suddreth
Denver Office of Economic Development
201 W Colfax Ave., Dept 1011
Denver, CO 80202
720-913-1540
nicol.suddreth@denvergov.org

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