Section 3


Section 3 refers to the third section of the Housing and Urban Development Act of 1968 as amended (12 U.S.C. 1701u) and its implementing federal regulations in 24 C.F.R. 135.

The purpose of Section 3 is to ensure that employment and economic opportunities generated by certain financing provided by the U.S. Department of Housing and Urban Development (HUD) are, to greatest extent feasible, directed to low-and very low-income persons, particularly those who are recipients of government assistance for housing, and to business concerns that provide economic opportunities to low- and very low income persons.

The City of Pueblo has set forth Section 3 Policies and Procedures to ensure that employment and economic opportunities generated by Section 3 covered projects are directed to low- and very low-income persons and business concerns.

Section 3 Employment & Contracting Goals 

The City of Pueblo sets overall Section 3 employment and contracting goals annually through the Consolidated Annual Action Plan, which is submitted to HUD for approval. The current Section 3 Goals are as follows.

30% of the aggregate number of new hires during a 1-year period of the project shall benefit Section 3 Residents. (Example: A construction contractor hires 10 new workers, 3 of the new workers should be Section 3 eligible persons.)


  1. At least 10 percent (10%) of the total dollar amount of all Section 3 covered contracts for building trades work arising in connection with housing rehabilitation, construction, and other public construction with federal funds shall be directed to Section 3 Business Concerns; and
  2. At least 3 percent (3%) of the total dollar amount of all other Section 3 covered professional services contracts shall be directed to Section 3 Business Concerns.


You may qualify for a hiring preference!

Qualified Section 3 Residents are to receive employment preference on a Section 3 Project.

Section 3 residents are:

  • Public housing residents;
  • Participants in YouthBuild Programs; and,
  • Persons who live in the Pueblo, CO metro statistical area and whose gross household income is below 80% of the Area Median Income (AMI). The 80% AMI Limits for Pueblo County per household size are:
# of Occupants to Income
No. of Household Occupants








Total Household Income
FY 2022

To apply for Section 3 preference, please fill out the form [Section 3 Business Preference]and submit it with all required financial documentation to:

Department of Housing & Citizen Services

City of Pueblo

2631 E. 4th Street

Pueblo, Colorado 81001

Is Section 3 a Business Opportunity for Your Firm
The City of Pueblo is committed to ensuring Section 3 Eligible Business Concerns derive economic benefit from projects built and sourced with HUD funding. Section 3 Business Concerns are to be given priority in contracting on Section 3 Covered Projects for up to 10% of the project with an additional 3% of the project reserved for professional contracts.

Business concerns can become Section 3 certified as a Section 3 Business if they meet 1 of the following:

  • 51% owned by certified Section 3 eligible residents;
  • 30% or more of the business’ permanent full time employees are certified Section 3 residents; or
  • 25% or more of the monetary value of the project is awarded to certified Section 3 Businesses.

It should be noted that a Section 3 certification is fluid from project to project. If you received your certification based on the income of the company’s ownership, then a change in ownership may affect your Section 3 status. Likewise if your certification is based on the employment of Section 3 Residents, then changes in your company roster may affect your status.

A listing of forms related to Section 3 contracting and business certification are located in Documents and Forms.

Certified Section 3 contractor list.

If you have questions, please contact us at 719-553-2850.