The purpose of Section 3 of the Housing and Urban Development Act of 1968 (“Section 3") is to ensure that employment and other economic and business opportunities generated by the United States Department of Housing and Urban Development ("HUD") financial assistance shall, to the greatest extent feasible, and consistent with existing Federal, State and local laws and regulations, be directed to low- and very low income persons, particularly those who are recipients of government assistance for housing, and to business concerns which provide economic opportunities to low- and very low-income persons.
The City receives Community Development Block Grant ("CDBG") and Home Investment Partnerships Program ("HOME") funding from HUD on an annual basis. Section 3 requirements generally apply to housing rehabilitation, housing construction, and other public construction activities funded with CDBG and HOME.
The City is required, to the greatest extent feasible, to provide opportunites for Section 3 residents and Section 3 businesses to participate in Section 3 covered activities.
Section 3 residents are defined as (1) a public housing resident; or (2) an individual who resides in the
area in which the section 3 covered assistance is expended, and who is: (a) A low-income person (income does not exceed 80% of the area median income) or (b) A very low-income person (income does not exceed 50% of the area median income). Current low and very low-income levels may be found at the Section 3 Income Chart.
Section 3 businesses are those (1) that are 51% or more owned by Section 3 residents; or (2) whose permanent, full-time employees include persons, at least 30% of whom are currently Section 3 residents, or within three years of the date of first employment with the business concern were Section 3 residents; or (3) that provide evidence of a commitment to subcontract in excess of 25% of the dollar award of all subcontracts to be awarded to other Section 3 businesses.
Residents of Santa Cruz County wishing to be included in the City's registry of Section 3 residents and receive notices of covered Section 3 employment and training opportunities should download and complete the Section 3 Resident Certification Form. Return the form to the Housing Program Coordinator, Economic Development, 337 Locust St., Santa Cruz, CA 95060 or by email to email@example.com.
Local Section 3 businesses wishing to be included in the City's registry of Section 3 businesses and receive notices of covered Section 3 construction bidding opportunities should download and complete the Section 3 Business Certification Form. Return the form to the City's Housing Management Analyst, Economic Development, 337 Locust St., Santa Cruz, CA 95060 or by email to firstname.lastname@example.org.
The City of Santa Cruz Section 3 Plan provides more information and direction regarding the City's Section 3 responsibilities.