Disadvantaged Business Enterprise

• A small business means a business concern, including its affiliates, that is independently owned and operated, not an affiliate or subsidiary of a business dominant in its field of operation, and qualified as a small business under the criteria and size standards in 13 CFR 121.
• A business is also considered small according to the Small Business Administration's established guidelines.

SHA encourages qualified firms to seek certification from the Washington State Office of Minority and Women's Business Enterprises, SHA also recognizes self-certified businesses. Please use the WMBE Business Self Identification Form, available on the Forms and policies page. 

SHA encourages participation of veteran-owned businesses in its procurement opportunities. 

Section 3 is a federally mandated program of the U.S. Department of Housing and Urban Development.

Under Section 3 of the HUD Act of 1968, federal funds invested in housing and community development shall provide contracts, employment, training, and other economic opportunities to low - and very low-income persons in the local jurisdiction, referred to as “Section 3 Workers;” and to businesses that employ such persons, referred to as a “Section 3 Business Concern.”

HUD’s regulations implementing the requirements of Section 3 were updated in 2020 to create more effective incentives for employers to retain and invest in their low- and very low-income workers, streamline reporting requirements by aligning them with typical business practices, provide for program-specific oversight, and clarify the obligations of entities (including SHA) that are covered by Section 3. SHA complies with Section 3 within its own operations and ensures the compliance of its vendors, contractors and consultants. 

Please check the Section 3 page on HUD Exchange website for up-to-date benchmarks. 

The following documents or forms are to be used for reporting Section 3 compliance. They are available on the Forms and policies page. 

• Section 3 Business Concern Certification for Contracting form 

     This form is for any business to use to self-certify, if applicable, as a Section 3 Business Concern.

• Section 3 Income Limits and Eligibility Guidelines

    This form is to be shared with any workers for your firm or workers for any of your sub’s firms so that they can determine if they fall within the Section 3 Income Limits. It is important to note that these income limits are calculated using the worker’s base rate, not including any benefits added to their rates.

• Section 3 Worker and Targeted Section 3 Worker Self-Certification form 

    This form is for individuals to use to self-certify as a Section 3 or Targeted Section 3 Worker.

• Section 3 Employer Certification Form

    This form is to be completed by the prime contractor listing all workers that are or have self-certified. 

• Section 3 Benchmarks for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses. 

    This included further explanations of the Section 3 Rule and defines how to determine if a worker is a Section 3 Worker and/or a Targeted Section 3 Worker.

• Section 3 Quarterly / Annual Reporting Form for SHA Projects 

    This form is to be completed quarterly by the prime consultant / contractor and sent to purchasing@seattlehousing.org  by not later than 30 days after the end of the quarter. The form lists the total hours worked by all for that monthly period for the contract and show how many of those hours were by Section 3 or Targeted Section 3 Workers.