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Section 3 Requirements

​Section 3 applies to CDBG-assisted public construction projects when the total amount of assistance exceeds $200,000. CDBG Grantees and contractors working on the projects, to the greatest extent possible, must make a good faith effort to train and employ low-income individuals living in the local area and to contract with businesses owned by or that employ Section 3 workers.

The Section 3 Plan describes Section 3 of the Housing and Urban Development Act of 1968, as amended, (12 U.S.C. 1701u) ("Section 3") and its applicability to the State of Illinois CDBG-funded projects administered by DCEO.  The implementing regulation for Section 3 can be found at 24 CFR Part 75.

Section 3 Reporting & Forms

Grantees are required to report on all labor hours worked, Section 3 labor hours, and Targeted Section 3 labor hours, as well as the efforts afforded by the grantee and contractors to employ section 3 workers and contract with Section 3 businesses when the HUD-mandated goals are not met.

The  Appendix to the Section 3 Plan contains fillable reporting forms, certification forms, and reference documents contained in the Plan. The following documents can be extracted for use in complying with the Section 3 requirements applicable to CDBG public construction projects.  See the State of Illinois CDBG Section 3 Plan for further detail and to ensure compliance.

  • Section 3 Clause
  • Contractor's Requirements
  • Intent to Comply with Section 3 Requirements
  • Certification of Bidder Regarding Section 3 and Segregated Facilities
  • Contractor Permanent Workforce Form
  • Section 3 Worker Certification Form
  • Section 3 Business Concern Certification Form
  • Section 3 Business Owner Certification Form
  • Section 3 Compliance – Target Section 3 and Section 3 Worker Tracking Report
  • Final Section 3 Utilization Report
  • Safe Harbor Compliance Report
  • Notice to Citizens
  • Illinois WorkNet Center Map
  • Illinois Regional Workforce Centers
  • Examples of Efforts to Award Contracts to Section 3 Businesses
  • Examples of Efforts to Offer Training and Employment Opportunities to Section 3 Workers
  • Section 3 Information & Resources

The Section 3 Compliance Report should be completed by each contractor and submitted to the grant administrator weekly. An aggregated report must be submitted at the end of the project. Instructions are contained in the Section 3 Plan.

Procurement & Bid Documents

CDBG recipients must include Section 3 language in all procurement and bid documents.  See Section 3 Clause.  In addition to the Section 3 Clause, Grantees must include the "Intent to Comply with Section 3" and the "Contractor's Requirements" forms with all bid documents.