Section 3

Overview

The Housing and Urban Development Act of 1968 created provision Section 3 to ensure that recipients of HUD funding provide training, jobs, and economic opportunities low- and very low-income persons, particularly those who receive federal housing assistance, and businesses that are owned by or substantially employ such persons.

A "Section 3 resident" is a low or very low-income person or someone who lives in public housing. A "Section 3 business" is one where a section 3 resident owns 51% or more of the share, or at least 30% of the full-time employees are section 3 residents, or were within three years of the date of first hire, or 25% of their contracts are with eligible section 3 businesses.

HUD Low Income Limits for Bexar County
Household Size1-Person2-Person3-Person4-Person5-Person6-Person7-Person8-Person
FY 2018 Income Limit$37,450$42,800$48,150$53,450$57,750$62,050$66,300$70,600

HUD Business Registry

The Section 3 Performance Evaluation and Registry System (SPEARS) is no longer active. SPEARS stored grantee Section 3 reports from 2012-2020. These files have been moved to an internal HUD site. Individual requests for files and other inquiries can be made through your local HUD Field Office or at Section3@hud.gov. For more Section 3 and system updates, subscribe to "Section 3" via GOVDelivery.

Both Section 3 and the Bexar County's Small Business and Entrepreneurship Department work to offer government funded projects to historically underutilized businesses. More information about Bexar County's Small Businesses can be found on their website.