Financial Management

City of Long Beach Section 3 Program 

Section 3 of the Housing and Urban Development (HUD) Act of 1968 is a provision that aims to direct economic opportunities generated by certain HUD funding toward low- and very-low income persons, particularly those residing in areas where the funds are expended. This is achieved by prioritizing employment, training, and contracting opportunities for these individuals and the businesses that employ them. 

For additional information on Section 3, please see the drop down menus below.  

Section 3

• Section 3 Definitions

  To qualify as a Section 3 Business:

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

  To qualify as a "Section 3 Worker,” a person must be one of the following:  

  • Employed by a Section 3 business concern.
  • Be a YouthBuild participant within the past five years.
  • Have a gross income below the income limit established each year by HUD.

  To quailfy as a "Targeted Section 3 Worker,” a person must be one of the following:  

  • Employed by a Section 3 business concern.
  • Be a YouthBuild participant within the past five years.
  • Live in the area of the project with the past five years
  • Live in public housing or Section 8-assisted housing within the past five years.

• What are Qualitative Efforts?

  For construction projects in the City of Long Beach that contain HUD Section 3 regulations, contractors are required to meet the Section 3 goals or demonstrate qualitative efforts to satisfy its benchmark goals.  If a contractor cannot meet Section 3 benchmarks, they should document efforts made to recruit Section 3 workers.
  
  Examples of Section 3 outreach efforts include: 

  • Outreach efforts to generate Section 3 job applicants
  • Provide and/or connect residents with assistance in seeking employment, including drafting resumes, preparing for an interview, and connecting residents to job-placement services
  • Training/apprenticeship opportunities
  • Hold or attend job fairs
  • Provide assistance to apply for/or attend education/vocational training
  • Assist residents with obtaining financial literacy training and/or financial coaching
  • Engage in outreach efforts to identify and secure bids from Section 3 businesses.
  • Provided bonding assistance, guaranties, or other efforts to support viable bids from Section 3 businesses.
  • Outreach, engagement, or referrals with the State one-stop system 

  Examples of documentation of qualitative efforts include:

  • Copies of direct mail solicitations
  • Pictures of job posting at job site or other locations
  • Screen shots of social media, digital/print media advertisements (including times/dates of posts)
  • Email and internet outreach efforts
  • Formal advertisements
  • Flyers or brochures about meetings
  • Sign-in lists from job fairs and other public meetings
  • Agendas and/or meeting notes from meetings with contractors 

• City of Long Beach Section 3 Forms and Resources

  • City of Long Beach Section 3 Guidelines and Forms  
  • City of Long Beach Section 3 Business Registry
  • City of Long Beach Section 3 Training 
  • Long Beach Workforce Innovation Network, LocalHire@longbeach.gov, (562) 570-7158

  The Long Beach Workforce Innovation Network – Adult Career Services Center can assist employers in locating Section 3 workers or assisting in:

  • Coordinate targeted recruitment for job opportunities including hosting job fairs and customized recruitment events
  • Recruit qualified applicants and make candidate referrals
  • Provide a resource room for interviewing and hiring
  • Post job opportunities via Cal Jobs and at our Adult Services Center
  • Enroll workers into Workforce Innovation and Opportunity Act (WIOA) and any other applicable programs upon qualification.
  • Provide work readiness and employability workshops.

• Other Section 3 Resources

  • Housing Authority of Long Angeles (HACLA), Section 3 Business Registry - To locate additional Section 3 Businesses, select "Section 3", "Section 3 Business Registry")
  • HUD Regulations (24 CFR Part 135)
  • HUD Section 3 Guidebook 
  • 24 CFR Part 75 "Final Rule"
  • Section 3 Frequently Asked Questions
  • HUD Income Limits - 2025 
  • La Guía de la Sección 3 

• 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

• 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

  • Building Industry Association of Southern California, Inc.
  • California Bids
  • Downtown & Grunion Gazette
  • LA Opinion
  • Long Beach Business Journal
  • Long Beach Post
  • Long Beach Press Telegram
  • Signal Hill Tribune
  • Southern California Contractors Association