Financial Management

HUD Section 3 Program

<sub>HUD Section 3 guidelines have changed with the issuance of HUDs "Final Rule". Projects with funds committed prior to November 30, 2020 are considered "Legacy Projects" and will adhere to the old Section 3 guidelines (24 CFR Part 135).

Projects with funds committed November 30, 2020 and after will adhere to the requirements of the new Final Rule (24 CFR Part 75) requirements.</sub> 


Section 3 Guidelines 

Click here for the new HUD Final Rule Regulation 24 CFR Part 75.

Section 3 of the Housing and Urban Development Act of 1968 [24 CFR Part 135] is a Regulation of the Department of Housing and Urban Development (HUD) that attempts to provide economic and employment opportunities to low-income residents and businesses when certain HUD funds are used for construction. As of November 30, 2020, 24 CFR Part 135 has been replaced with 24 CFR Part 75. The new regulation is applicable to all projects whose funding was committed November 30, 2020 or after. 

It is a policy of the City of Long Beach that when a construction project contains HUD Section 3 regulations, that best efforts are to be utilized to meet Section 3 requirements.  Contractors shall cooperate with the City and its representatives regarding compliance with Section 3 regulations and shall cause its employees and subcontractors to cooperate with the City in complying with Section 3.  The City will provide assistance to Contractors in complying with Section 3 HUD regulations.

For more information on how to comply with the City of Long Beach’s Section 3 Policy, please read the Compliance Guidelines and Attachments.  

For information on how to apply Section 3 to projects with funds committed November 30, 2020 or after, please use the COLB HUD Section 3 Guidelines and Attachments. 

For information on how to complete outreach for projects with funds committed prior to November 30, 2020, please use the City of Long Beach HUD Best Efforts Submittal Package and see our HUD Section 3 Frequently Asked Questions.  

HUD Section 3 Certification

The City of Long Beach has a created a certification process for contractors and businesses that would like to be included in our HUD Section 3 database.  To be eligible for certification contractors must meet one of the following qualifications as described in the HUD Final Rule:

• Fifty-one percent (51%) of the business has to be owned and controlled by low or very-low income persons; or
• Seventy-five percent (75%) or more of the labor hours performed for the business over the prior three-month period are performed by Section 3 Workers; or
• Fifty-one percent (51%) of the business has to be owned and controlled by current residents of public housing or Section 8-assisted housing.  

Contractors and businesses that are seeking certification can self-register on HUDs Section 3 Business Registry You can also be added to the City's Section 3 business list by downloading the Certification Form and emailing a copy to laborcompliance@longbeach.gov.

Publishing Sources for HUD Section 3 Contracting Opportunities

Listed alphabetically below by category

Advertising Business Assistance Agencies, Minority Contractors Associations and/or Community Organizations

• Compliance News
•  Construction Bid Source
• LA County Office of Small Business
• Good Faith Advertising
• National Association of Minority Contractor Southern California

Publications that advertise opportunities for to obtain assistance to overcome limitations such as inability to obtain bonding, lines of credit, financing, or insurance

• Asian Business Association
• Black Contractors Association
• GoodFaithEfforts.com
• Latin Business Association
• National Association of Women Business Owners
• Southern California Contractors Association
• National Center for American Indian Enterprise Development

Agencies administering HUD Youthbuild programs or local chambers of commerce

• Hispanic Chambers of Commerce Orange
• Long Beach Chamber of Commerce
• Los Angeles Chamber of Commerce
• Regional Hispanic Chamber of Commerce
• Signal Hill Chamber of Commerce

Trade association papers/newsletters, local media, such as community television networks, newspapers of general circulation, and/or radio advertising

• Associated General Contractors (AGC)
• Building Industry Association of Southern California, Inc.
• California Bids
• Downtown & Grunion Gazette
• LA Opinion
• LiUNA Local 507  
• Long Beach Business Journal
• Long Beach Post
• Long Beach Press Telegram
• Signal Hill Tribune
• Southern California Contractors Association

Unions - ask for Contractors that are signatories & Section 3 eligible

If your business qualifies for one of the above-referenced categories and you would like to be added to the list, please email us at:  LaborCompliance@longbeach.gov or call us at: (562) 570-6200.

Links:

• HUD Section 3 Business Registry
• City of Long Beach Section 3 Business List 
• HUD Regulations (24 CFR Part 135)
• 24 CFR Part 75 "Final Rule"
• COLB HUD Section 3 Guidelines and Attachments (For projects November 30, 2020 and after)
• Section 3 Guidelines and Section 3 Attachments for Legacy Projects (Prior to November 30, 2020)
• HUD Section 3 Application  - Complete and send to laborcompliance@longbeach.gov to be added to our Section 3 Business List
• Section 3 Frequently Asked Questions
• HUD Section 3 Opportunity Portal - HUDs Opportunity Portal helps match Section 3 Workers to jobs and training opportunities and Section 3 Businesses to contracting opportunities.
• HUD Income Limits website