Section 3

Section 3 of the Housing and Urban Development Act of 1968 created the Section 3 program as an effort to create long-term economic opportunities for low- and very-low-income residents and businesses. The ultimate goal is that, to the greatest extent feasible, the investment of federal funding in local housing and community development projects will also result in economic opportunities for area residents and businesses. This may be in the form of employment, job training, or contracting opportunities. For more information about the City’s procedures for implementing Section 3, please review the City’s Policy.

  • If you are a section 3 business and are interested in bidding on opportunities with the City of Lincoln please access/register in our ebid system. The City of Lincoln Purchasing division will keep a list of all certified Section 3 businesses. Urban Development will receive a list of certified businesses on a scheduled basis for additional outreach.
  • If you are a contractor looking to submit your information to let us know about your capacities please use this 'Interested Contractor' survey form.
  • The purpose of HUD’s Section 3 program is to provide employment, training and contracting opportunities to low-income individuals, particularly those who are recipients of government assistance for housing or other public assistance programs. If you are Section 3 worker (see details below) please fill out the  'Section 3 Worker and Targeted Section 3 Worker Certification' survey form.


Current Section 3 Policy & Resources

Section 3 policy(PDF, 103KB)
Resource HUB for Businesses and Workers

Current Section 3 Projects

Downtown Corridor project 9th & 10th St - K- S St, and 9th to 15th St
Permanent Supportive Housing  at 8th & J St

What is Section 3?

A resident or a business may qualify as Section 3.

 - - -  Section 3 Worker 

Section 3 Worker: Any worker who meets at least one of the following criteria:

  • Low- or very low-income, as established by HUD’s income limits
  • Employed by a Section 3 business concern
  • Youth Build participant
  • See income limits below

     

Targeted Section 3 Worker (for Community Development Projects): Any worker who meets at least one of the following criteria:

  • Employed by a Section 3 Business Concern
  • Currently fits or fit when hired at least one of the following categories, as documented within the past five years:
    • Living within the service area or neighborhood of the project
    • Youth Build participant
    • See income limits below

       

Targeted Section 3 Worker (for Public Housing Projects): Any worker who meets at least one of the following criteria:

  • Employed by a Section 3 Business Concern
  • Currently fits or fit when hired at least one of the following categories, as documented within the past five years:
    • A resident of public housing or Section 8 assisted housing
    • A resident of other public housing projects or Section 8-assisted housing managed by the PHA that is providing the assistance
    • Youth Build participant
    • See income limits below

       

Section 3 Income Limits

To be considered a Section 3 worker, an individual's income must fall below the low- or very-low-income level as determined by HUD.

  • The 2024 individual income limit is $57,200/year
  •  - - - $27.50/hour if a person works full time (40 hours/week)

  • Data can be found here

Workers must be certified as Section 3 to participate in the program. Certification lasts for a period of 5 years. A Section 3 Worker can be someone who is employed or someone who is seeking employment. To be placed on the City’s Section 3 Worker database, please complete the 'Section 3 Worker and Targeted Section 3 Worker Certification' survey form


- - - Section 3 Business Concern    

A business that meets one of the following eligibility criteria:
(Documentation requirements will apply)

  • 51% or more of the business is owned by low- to very low-income people
  • 51% or more of the business is owned by public housing residents or residents of Section 8 housing

  • 75% or more of the labor hours performed for the business on construction must be performed by low- or very low-income people

A business must certify as Section 3 Business Concern by registering and providing supporting documentation to the Lincoln Purchasing division via its eBid portal

Section 3 Reporting Requirements

Section 3 Businesses working on construction projects that have a Section 3 requirement will be required to track and report labor hour data to the City of Lincoln. The labor hour reporting requirement replaces the previous “new hire” reporting information.

On Section 3 construction projects, the following benchmarks must be met:

  • At least 25% of labor hours should be represented by Section 3 workers and Targeted Section 3 Workers
    • Section 3 workers make up 20% or more of the total labor hours worked by all workers
    • Targeted Section 3 workers make up 5% of the total labor hours worked by all workers

  • Contractors may also be required to engage in some qualitative efforts to demonstrate Section 3 compliance if the above benchmarks cannot be met. 
  • If you need assistance in creating a Section 3 Plan to document qualitative efforts, following contract execution and prior to starting construction please send an emial to section3@lincoln.ne.gov


Upcoming Events and Training Opportunities

If you are a contractor looking to submit your information to let us know about your capacities please use this 'Interested Contractor' survey form.

HUD Supporting Information

Section 3 Contact

For more information about Section 3, please contact us.
Email: section3@Lincoln.ne.gov

Event and Training Opportunities

  • Ongoing - American Job Center
  • Past - N/A

Related Information

Back to top