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:

  • Is 51 percent or more owned by Section 3 residents;
  • Employs Section 3 residents for at least 30 percent of its full-time, permanent staff; or
  • Provides evidence of a commitment to subcontract to Section 3 business concerns, 25 percent or more of the dollar amount of the awarded contract.
In order to see if your business is eligible, follow the steps here or contact Derek Katznelson

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, please contact or visit

Additional Resources