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What is Section 3?


The City of Waterbury (“City”) is committed to increasing the benefit to the City and its residents from the investment of public funds in certain publicly-funded construction projects and to furthering the goals of Section 3 of the U.S. Department of Housing and Urban Development (“HUD”) Act of 1968, as amended (“Section 3”).  The City has adopted its Section 3 Policy & Action Plan “to ensure that the employment and other economic opportunities generated by the federal financial assistance for housing and community development programs [which the City receives] shall, to the greatest extent feasible, be directed towards low- and very low-income residents, particularly those who are recipients of governmental assistance in housing” and towards businesses that are committed to providing opportunities to low and very low income Waterbury residents.  12 U.S.C. §1701u(b).

What is Section 3:

Section 3 is a provision of the Housing and Community Development Act of 1968 which is intended to ensure that, when employment or contracting opportunities are generated by the expenditure of certain federal funding, in particular HUD funding, on construction or rehabilitation of housing or other public construction projects, preference is given to low- and very low-income City residents and businesses committed to providing these opportunities.

The requirements of Section 3 are triggered when the City spends housing or community development funds from HUD for housing rehabilitation, including reduction or abatement of lead-based paint hazards; housing construction; or other public construction projects, including infrastructure.  Routine maintenance, repair and replacement projects and contracts solely to furnish materials or supplies are not covered under Section 3.  Section 3 applies to new hires.  A new hire is a full-time employee for a permanent, temporary or seasonal position that is created as a direct result of the expenditure of Section 3 Covered Assistance.

The requirements of Section 3 apply when the amount of HUD funds received by the City exceeds $200,000 and when a particular contract exceeds $100,000.  (If no contracts exceed, $100,000, Section 3 still applies to the City while expending Section 3 Covered Assistance.)

Who is a Section 3 eligible resident:

Section 3 eligible residents are Waterbury residents who live in public housing, receive government housing assistance or are low- or very low income persons.  Low-income is generally defined as families (including single persons) whose incomes do not exceed eighty (80%) percent of the median income for our area.  Very low-income is generally defined as families (including single persons) whose incomes do not exceed fifty (50%) percent of the median family income for our area.  (Income limits are set annually by HUD.)   Individuals will be required to provide proof of eligibility to participate in Section 3.

What is a Section 3 Business:

A Section 3 Business is one that:

  • is at least fifty-one (51%) percent owned by Section 3 Resident(s)
  • has at least thirty (30%) percent permanent, full-time employees who are currently Section 3 Residents, or were Section 3 Residents within the first three years of employment; o
  • provides evidence of a commitment to subcontract in excess of twenty-five (25%) percent of the dollar award of all subcontracts to businesses that meet either (1) or (2) above.
How to find opportunities under Section 3:

Opportunities arising from Section 3 may include job training, employment or contracts.  Residents and businesses must demonstrate that they meet the criteria stated above and are able to perform the specific job or successfully complete the contract they are seeking.  Certification as Section 3 eligible is not a guarantee of employment or contract.

If you are a resident of the City of Waterbury and you think you are eligible for Section 3 preference in training or hiring opportunities, you must complete the Certification for Residents Seeking Section 3 Preference in Training & Employment and Demonstration of Capability.  Said Certification must be filed with Northwest Regional Workforce Investment Board (NRWIB), ( or 203-574-6971)

If you are a business looking for Section 3 opportunities, you must complete the Certification for Business Concerns Seeking Section 3 Preference in Contracting and Demonstration of Capability.  Said Certification must be filed with the Purchasing Department of the City of Waterbury.   ( or 203-574-6747)

List of all certified Section 3 Businesses
List of RFP’s and upcoming opportunities
Section 3 Brochure
Section 3 Brochure (Spanish Version)
Sample Economic Opportunity Plan
Notice of the City of Waterbury’s Section 3 Policy & Action Plan 
Assurance of Compliance
Economic Opportunity Plan Questions
Section 3 Clause
Monthly Compliance Form
Monthly Reporting Form