Section 3 is a mechanism for the Federal Government to foster local economic development, neighborhood economic improvement, and individual self-sufficiency. Section 3 is the legal basis for providing jobs for residents and awarding contracts to businesses in areas receiving certain types of HUD financial assistance.
Under Section 3 of the HUD Act of 1968, Congress established this policy to guarantee that the employment and other economic opportunities created by Federal financial assistance for housing and community development programs should, to the greatest extent feasible, be directed toward low- and very-low income persons, particularly those who reside in subsidized housing.