Section 3 Monitoring

What is Section 3?

Section 3 is a provision of the Housing and Urban Development Act of 1968, which recognizes that HUD funds are typically one of the largest sources of federal funding expended in communities through the form of grants, loans, entitlement allocations and other forms of financial assistance. Section 3 is intended to ensure that when employment or contracting opportunities are generated because of HUD funds, preference must be given to low and very low-income persons or business concerns residing in the community where the project is located.

Who Must Comply?

Regardless of the contract value, all Public Housing Authority projects require Section 3. Other HUD funded projects, as well as projects funded by the Community Development Block Grant and HOME funds require Section 3 when the project value is over $200,000. Even if the funds only accounted for a portion of the project cost, Section 3 requirements apply to the entire project.

Are You In Compliance?

We can help.  Padilla & Associates has the expertise to ensure your agency will comply with all Section 3 regulations.  Contact us for more information.

Why Padilla & Associates, Inc.?

Padilla & Associates, Inc. has been at the forefront of Section 3 compliance, successfully monitoring projects for Awarding Agencies for the past sixteen (16) years. Padilla & Associates, Inc.’s Section 3 Monitoring services encompass a myriad of defined strategies to ensure that best efforts are utilized by contractors and subcontractors to comply with the Awarding Agencies Section 3 contractual requirements. Through these strategies, Padilla & Associates, Inc. is able to safeguard Awarding Agencies from any potential loss of funding by ensuring that all the applicable reporting requirements are met.

Padilla & Associates, Inc. staff not only has experience monitoring Section 3 for Awarding Agencies, but also has extensive experience providing technical assistance to contractors. Padilla & Associates, Inc. can assist contractors to develop their plan, implement their plan, and successfully comply with all Federal regulations to avoid penalties, withholdings, or even debarment for failure to comply with requirements.