In the realm of real estate construction and development, compliance with Section 3 of the Housing and Urban Development Act of 1968 is crucial. This federal mandate ensures that employment, training, and contracting opportunities generated by certain HUD financial assistance go to low- and very low-income persons, particularly those who are recipients of government assistance for housing. For construction and development companies, adhering to Section 3 not only fulfills legal obligations but also fosters community growth and enhances company reputation. Here are key strategies for effective hiring under Section 3 requirements:

Understand the Requirements

Before diving into recruitment, it’s essential to thoroughly understand the Section 3 requirements:

Numerical Goals: HUD’s regulations specify that 30% of the total number of new hires for each project should be Section 3 residents.

Eligibility: Section 3 residents are defined as public housing residents or individuals who live in the area where a HUD-funded project is located and who have incomes below 80% of the area’s median income.

Priority Hiring: Priority should be given to residents of the public and assisted housing developments and other low-income individuals living in the vicinity of the project.

Develop a Section 3 Plan

Creating a comprehensive Section 3 plan is foundational. This plan should outline your strategy for recruiting, training, and employing Section 3 residents and how you will meet the numerical goals. Incorporate measurable goals, specific actions, and a timeline to ensure continuous progress and accountability.

Engage with Local Agencies and Community Organizations

Collaboration with local housing authorities, workforce development agencies, and community organizations is vital. These entities often have direct access to Section 3 residents and can assist in outreach and recruitment efforts. Establish partnerships to leverage their networks and resources.

Advertise Job Opportunities Widely

To reach Section 3 residents effectively, utilize diverse advertising channels. Post job openings in local newspapers, community bulletin boards, and social media platforms. Additionally, consider hosting job fairs and information sessions in neighborhoods with high concentrations of Section 3 residents. Use local radio and community newsletters to spread the word further.

Provide Training and Apprenticeship Programs

Offering training and apprenticeship programs can bridge the skills gap and prepare Section 3 residents for employment in construction and development roles. Partner with vocational schools, community colleges, and training centers to develop programs tailored to the needs of your projects. Ensure these programs are accessible and provide necessary support, such as transportation and childcare, if possible.

Work with Section 3 Businesses

Beyond direct hiring, subcontracting with Section 3 businesses is another compliance avenue. These businesses are either owned by Section 3 residents or employ a significant number of them. Establish a directory of certified Section 3 businesses and prioritize them in your contracting processes. HUD’s goal is for 10% of the total dollar amount of all construction contracts to be awarded to Section 3 businesses.

Implement Supportive Services

Providing supportive services can enhance the success and retention of Section 3 hires. This might include mentoring, career counseling, and ongoing skills development opportunities. Supportive services help create a sustainable employment environment for Section 3 residents.

Monitor and Report Compliance

Regular monitoring and reporting are essential to demonstrate compliance with Section 3 requirements. Maintain detailed records of your hiring practices, training programs, and subcontracting efforts. Use HUD’s Section 3 Performance Evaluation and Reporting System (SPEARS) to submit required reports and track your progress. Ensure you document the following:

  • Number of new hires
  • Section 3 status of each hire
  • Job titles of Section 3 hires
  • Section 3 business contracts awarded and their dollar amounts
Evaluate and Adjust Your Strategies

Continuous evaluation of your Section 3 strategies ensures they remain effective and aligned with compliance goals. Solicit feedback from Section 3 hires and partner organizations, and be willing to adjust your approach based on this input. Staying adaptable and responsive is key to long-term success.

Conclusion

Hiring under Section 3 requirements may seem daunting, but with a strategic approach, it can become an integral part of your company’s operations. By understanding the regulations, developing a solid plan, and engaging with local resources, you can meet your compliance goals while contributing to the economic upliftment of the communities you serve. Implement these strategies to not only adhere to Section 3 but also to build a diverse and skilled workforce that drives your projects forward.

For more detailed guidance on Section 3 compliance and additional resources, visit the HUD website or contact your local HUD office.