HUD has recently changed the definition of a Section 3 Business:

  • At least 51% owned by a CHA resident(s) or HCV participant(s)
  • At least 51% owned by a low-income person(s)
  • A business where low-income persons make up a minimum of 75% of the labor hours

HUD defines a Section 3 Worker as:

Any worker who currently fits or when hired within the past five years fit at least one of the following:

  • The worker’s income for the previous or annualized year is below the income limit established by HUD. ($61,800 for Chicago)
  • The worker is employed by a Section 3 Business Concern
  • The worker is a YouthBuild participant


HUD defines a Targeted Section 3 Worker as:

  • A worker employed by a Section 3 Business Concern OR
  • A worker who currently fits or when hired fit at least one of the following categories within the past five years:
    • A resident of public housing or HCV;
    • A resident of other public housing projects or Section 8 assisted housing managed by the PHA providing assistance; OR
    • A Youthbuild worker