CHA is required to administer Section 3 of the HUD Act of 1968, which require that HUD funds provide low-income individuals with a springboard for economic empowerment through direct participation in construction and other activities that are designed to physically improve and revitalize the communities in which they live.
HUD considers public housing authorities to be in compliance with Section 3 if they meet the following minimum numerical goals:
30% of the aggregate number of new hires be Section 3 residents;
10% of the total dollar amount of all covered construction contracts to be awarded to Section 3 business concerns; and
3% of the total dollar amount of all covered non-construction contracts to be awarded to Section 3 business concerns.
Section 3 requirements apply to all contractors and vendors who receive awards from housing authorities.