Section 3 - HUD Opportunities

The Lower Rio Grande Development Council has been tasked with providing technical grant assistance and outreach for registration under Section 3. Section 3 is a provision of the Housing and Urban Development Act of 1968 to foster local economic development, to improve neighborhoods, and to make individuals self-sufficient.

As a partner with TxCDBG Program, LRGVDC would like to improve knowledge of Section 3 for the benefit of the Rio Grande Valley community and its residents. Attached on the sidebar is an updated list of Section 3 business and contractors, for employment or contracting services.

Section 3 provides opportunities under HUD to two kinds of Section 3 classifications: individuals and businesses. Each affords unique priorities and programs to better serve the community.


Section 3 individual designations are those in public housing, or those who are in the area who lives where a HUD-assisted project is located. Training and employment priorities are granted to these residents by the HUD department or HUD-funded organizations.


A Section 3 business:

  • 51% or more of the business is owned by low- or very low-income perons; or
  • 75% of the labor hours performed for the businesses over the prior-three-month period were performed by Section 3 workers; or
  • 51% or more of the business is owned by current public housing residents or residents who currently live in Section 8 assisted housing.
In order to see if your business is eligible, follow the steps here.

Programs involved:

These Section 3 programs applies to

1. HUD-funded Public and Indian Housing assistance for development, operating and modernization expenditures
2. Certain HUD-funded Housing and Community Development projects that complete housing rehabilitation, housing construction, and other public construction.

Businesses who are certified in Section 3 will receive priority for HUD projects.

If you would like to self-certify your business:

Register your Section 3 Business here

If your business secures a HUD contract under Section 3 priorities, then you will be required to digitally report in the SPEARS web based platform.

If you would like to make a complaint about a Section 3 certified business:

Fill out this Form and mail, email or fax to the appropriate regional office.

For more information visit

Additional Resources