The following list contains commonly used terms and definitions about CHA's Section 3.

• New Hires
• Resident Owned Business (ROB)
• Employment Opportunities Generated By Section 3 Covered Assistance
• Recipient
• Section 3
• Section 3 Business Concern
• Section 3 Clause
• Section 3 Covered Activity
• Section 3 Covered Assistance
• Section 3 Covered Contract
• Section 3 Covered Project
• Section 3 Joint Venture
• Section 3 Resident

New Hires

Full-time employees for permanent, temporary, or seasonal employment opportunities.

Resident Owned Business (ROB)

A ROB is a business concern owned or controlled by public housing residents, that is: (a) at least 51% owned by one or more public housing residents; and (b) whose management and daily business operations are controlled by one or more such individuals. For purposes of Section 3 compliance, a ROB must also meet the CHA definitions of a Section 3 business concern as described below.

Employment Opportunities Generated By Section 3 Covered Assistance

All employment opportunities generated by the expenditure of Section 3 covered PIH assistance (i.e. operating assistance, development assistance, and modernization assistance) and with respect to Section 3 covered housing and community development assistance, all employment opportunities arising in connection with Section 3 covered projects, including management and administrative jobs (including architectural, engineering, or related professional services and jobs directly related to administrative support of these activities) connected with the Section 3 covered project.  Top

Recipient

Any entity which receives Section 3 covered assistance, directly from HUD or from another recipient and includes, but is not limited to, any State, unit of local government, PHA, IHA, Indian Tribe, or other public body, public or private nonprofit organization, private agency or institution, mortgagor, developer, limited dividend sponsor, builder, property manager, community housing development organization, resident management corporation, resident council, or cooperative association. Recipient also includes any successor, assignee, or transferee of any such entity, but does not include any ultimate beneficiary under the HUD program to which Section 3 applies and does not include contractors.  Top

Section 3

Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C.1701u).  Top

Section 3 Business Concern

As defined by the CHA, a Section 3 business concern is one:

1. That is Fifty-one (51%) percent or more owned by Section 3 residents; or
2. Whose permanent, full-time employees includes persons, at least 30 percent of whom are current Section 3 residents, or were Section 3 residents within three (3) years of the date of first employment with the business concern; or
3. That provides evidence of a commitment to: (1) subcontract 20 percent or more of the total amount of the contract (including any modifications); and (2) in turn subcontracts in excess of 25 percent of the amount from (1) to Section 3 business concerns as defined in A or B (25% of 20%). Example: If the Contract Amount is = $1,000,000, vendor must subcontract at least 20% or $200,000. Of the $200,000, 25% or $50,000 must go to Section 3 business concern(s) as defined in A or B.  Top

Section 3 Clause

The contract provisions and sanction set forth in 24 CFR 135.38.  Top

Section 3 Covered Activity

Any activity that is funded by Section 3 covered assistance including Public housing assistance.  Top

Section 3 Covered Assistance

There are no dollar amount thresholds for PIH (Public and Indian Housing) funded Section 3 covered activities. Section 3 applies to all contractors and subcontractors performing work in connection with the following assistance regardless of the amount of the contract or subcontract:

• Public and Indian housing development assistance provided pursuant to Section 5 of the 1937 Act;
• Public and Indian housing operating assistance provided pursuant to Section 9 of the 1937 Act;
• Public and Indian housing modernization assistance provided pursuant to Section 14 of the 1937 Act;
• Section 8 assistance for work arising in connection with: housing rehabilitation, housing construction, or other public construction projects.  Top

Section 3 Covered Contract

A contract or subcontract (including a professional service contract) awarded by a recipient or contractor for work generated by the expenditure of Section 3 covered assistance or for work arising in connection with a Section 3 covered project. "Section 3 covered contracts" do not include contracts for the purchase of supplies and materials except, whenever a contract for materials includes the installation of the materials, the contract constitutes a "Section 3 covered contract".  Top

Section 3 Covered Project

The construction, reconstruction, conversion or rehabilitation of housing (including reduction and abatement of lead-based paint hazards), other public construction which includes buildings or improvements (regardless of ownership) assisted with housing or community development assistance.  Top

Section 3 Joint Venture

An association of business concerns, one of which qualifies as a Section 3 business concern, formed by written joint venture agreement to engage in and carry out a specific business venture for which purpose the business concerns combine their efforts, resources, and skills for joint profit, but not necessarily on a continuing or permanent basis for conducting business generally, and for which the Section 3 business concern:

• Is responsible for a clearly defined portion of the work to be performed and holds management responsibilities in the joint venture; and
• Performs at least 25% of the work and is contractually entitled to compensation proportional to its work.  Top

Section 3 Resident

1. A public housing resident, or
2. An individual who resides in Cook County and who meets the following criteria:
   
   
• Low-income persons - families (or single persons) whose incomes do not exceed 80 percent of the median income for the area.
• Very low-income persons - families (or single persons) whose incomes do not exceed 50 percent of the median income for the area.  Top