While SHA encourages qualified firms to seek certification as a Minority Business Enterprise or a Women's Business Enterprise from the Washington State Office of Minority and Women's Business Enterprises, the agency recognizes self-certified businesses. 

• Website for the Washington State Office of Minority and Women's Business Enterprises
• Women and Minority Business Enterprise self-identification form
• Women and Minority Business Enterprise self-identified list

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

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. 

The updated rule establishes these benchmarks: 

1. Twenty-five (25) percent or more of the total number of labor hours worked by all workers employed with public housing financial assistance in the Public Housing Authority’s or other recipient’s fiscal year are Section 3 Workers;
2. Of which Five (5) percent or more are Targeted Section 3 Workers.

The updated rule includes the following definitions:

1. Section 3 Worker means any worker who currently fits or when hired within the past five years fit at least one of the following categories, as documented: 
   1. The worker’s income for the previous or annualized calendar year is below the income limit established by HUD. HUD’s income limits can be obtained from:

http://www.huduser.org/portal/datasets/il.html

1. 2. The worker is employed by a Section 3 Business Concern. 
   3. The worker is a YouthBuild participant.
2. For Section 3 projects, a Targeted Section 3 Worker means a Section 3 worker who: 
   2. is employed by a Section 3 Business Concern; OR 
   3. currently fits or when hired fit at least one of the following categories, as documented within the past five years: 
      1. A resident of public housing or Section 8-assisted housing; 
      2. A resident of other public housing projects or Section 8-assisted housing managed by the Public Housing Authority that is providing the assistance; or 
      3. A YouthBuild participant.

3. Section 3 Business Concern means a business concern meeting at least one of the following criteria, documented within the last six-month period: 
   1. It is at least 51 percent owned and controlled by low- or very low-income persons; 
   2. Over 75 percent of the labor hours performed for the business over the prior threemonth period are performed by Section 3 Workers; or 
   3. It is a business at least 51 percent owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing.

 The following forms are to be used for reporting Section 3 compliance:

• 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 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 Monthly Reporting Form for SHA Projects (This form is to be completed monthly by the prime consultant / contractor and sent to purchasing@seattlehousing.org.  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.)

This new HUD Rule went into effect in November 2020 and requires the tracking of Section 3 hours starting July 1, 2021.  

We have attached the forms mentioned above. Please compile the data needed to report hours from July 1, 2021 through December 31, 2021. Please put this information on one Monthly Reporting Form and send to purchasing@seattlehousing.org by September 1, 2022.

Also, we ask that you use another Monthly Reporting Form to report hours from January 1, 2022 through July 31, 2022, and send to purchasing@seattlehousing.org.  

After that, for reporting hours in August 2022 and after, please send a Monthly Reporting Form to purchasing@seattlehousing.org by the 10^th of the following month.

Please contact purchasing@seattlehousing.org if you have any questions.

Thank you,

Housing Authority of the City of Seattle 

Section 3 Business Concern Certification for Contracting.pdf (seattlehousing.org)

Section 3 Worker and Targeted Section 3 Worker Self-Certification Form.pdf (seattlehousing.org)

Section 3 Monthly Reporting Form for SHA Projects (seattlehousing.org)