HUD PILOT IN LOS ANGELES CONNECTS OVER 2,600 LOW-INCOME WORKERS TO JOB OPPORTUNITIES IN FIRST TWO YEARS
Yields approximately $55 million in contracts to eligible businesses

SAN FRANCISCO - Today, U.S. Department of Housing and Urban Development (HUD) in Region IX announced the preliminary results of the Los Angeles pilot Section 3 Business Registry. This pilot is part of a five-city HUD initiative launched in 2012 and also piloted in Detroit, Miami, New Orleans, and Washington, DC to help local public agencies better connect local businesses that hire low-income residents and workers with the contracting and economic development opportunities created by HUD-funded housing and development projects, a requirement under Section 3 guidelines.

"In just the first two years, the City of Los Angeles and its housing authority have collectively hired approximately 2,600 new employees eligible through the federal Section 3 program," said HUD Regional Administrator Ophelia Basgal. "They have also entered into contracts with Section 3-eligible businesses to perform both construction and non-construction work worth nearly $55 million."

This announcement comes a day after HUD Secretary Julián Castro announced new changes to Section 3 that direct jobs and training to low-income workers and connects businesses that hire them with HUD-funded contracting opportunities. The initiative would increase opportunities for businesses that hire local public housing residents for HUD-funded projects. In addition to changes to Section 3 requirements, Secretary Castro also announced the launch of a National Section 3 Business Registry. The registry is a searchable online database that local housing authorities, government agencies, and contractors can use to find firms that are self-certified as employing at least 30 percent public housing residents or low-income workers. Nearly 1,000 businesses have signed up for the registry nationally.

Every year, HUD funds create thousands of jobs across the country that range from construction to professional services like accounting or engineering. From 2009-2014, based on data reported by public housing authorities and HUD modeling, approximately 170,000 jobs were created by HUD for eligible low-income workers through this program. More than $5 billion in HUD-funded contracts has been directed to Section 3 businesses since 2009.

Register a business, search the database of local self-certified Section 3 businesses or learn more about HUD's National Section 3 Business Registry. More information about the Section 3 program. Read more about HUD's proposed rule amendment to Section 3 (www.huduser.org/portal/economicOpportunities.html).

Answers to Frequently Asked Questions on Section 3.

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HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. More information about HUD and its programs is available on the Internet at www.hud.gov and http://espanol.hud.gov.

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