Disadvantaged Business Enterprise
Seattle Housing Authority strongly encourages the participation of small businesses, HUD Section 3 businesses, veteran-owned business as well as minority-owned and women-owned business enterprises (WMBE).
If you have questions about the processes or requirements for these types of businesses, email email@example.com.
- 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.
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.
SHA encourages participation of Veteran-owned businesses in its procurement opportunities. Our procurement policy and outreach efforts ensure that these businesses have equal opportunity to compete for and do business with the SHA
HUD Section 3
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:
- 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;
- Of which Five (5) percent or more are Targeted Section 3 Workers.
The updated rule includes the following definitions:
- 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:
- 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:
- The worker is employed by a Section 3 Business Concern.
- The worker is a YouthBuild participant.
- For Section 3 projects, a Targeted Section 3 Worker means a Section 3 worker who:
- is employed by a Section 3 Business Concern; OR
- currently fits or when hired fit at least one of the following categories, as documented within the past five years:
- A resident of public housing or Section 8-assisted housing;
- A resident of other public housing projects or Section 8-assisted housing managed by the Public Housing Authority that is providing the assistance; or
- A YouthBuild participant.
- Section 3 Business Concern means a business concern meeting at least one of the following criteria, documented within the last six-month period:
- It is at least 51 percent owned and controlled by low- or very low-income persons; OR
- Over 75 percent of the labor hours performed for the business over the prior three-month period are performed by Section 3 Workers; OR
- 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 Income Limits – 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. This form is to be submitted to SHA as described below.)
- HUD’s 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 firstname.lastname@example.org by not later than 30 days after 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.)
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 a Annual Reporting Form and send to email@example.com.
Also, we ask that you use another Annual Reporting Form to report hours from January 1, 2022 through December 31, 2022, and send to firstname.lastname@example.org.
After that, please report hours for January 2023 and after by a Quarterly Reporting Form to email@example.com by no later than 30 days after end of the quarter.
Please contact firstname.lastname@example.org if you have any questions.
Housing Authority of the City of Seattle
Links to Section 3 Documents and Forms