Minority Business Enterprise Development (MBE)
In accordance with Executive Orders 12432, “Minority Business Enterprise Development,” and 11625, “National Program for Minority Business Enterprise,” OSDBU is charged with overseeing the implementation of voluntary compliance programs to stimulate MBE participation in procurement and assistance programs.
OSDBU provides advice and recommendations to the Secretary of HUD on MBE activities, prepares, monitors and evaluates the Department’s Annual Minority Business Development Plan and reports MBE program performance to the Minority Business Development Agency (MBDA) of the Department of Commerce.
What is Section 3?
Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 that helps foster local economic development, neighborhood economic improvement, and individual self-sufficiency. The Section 3 program requires that recipients of certain HUD financial assistance, to the greatest extent feasible, provide job training, employment, and contracting opportunities for low- or very-low income residents in connection with projects and activities in their neighborhoods.
How does Section 3 promote self- sufficiency?
Section 3 is a starting point to obtain job training, employment, and contracting opportunities. From this necessary foundation, coupled with other resources, comes the opportunity for economic advancement and self-sufficiency.
- Federal, state and local programs
- Advocacy groups
- Community and faith-based organizations
Who are Section 3 residents?
Section 3 residents are:
- Public housing residents or
- Persons who live in the area where a HUD-assisted project is located and who have a household income that falls below HUD’s income limits.
Determining Income Levels
- Low income is defined as 80% or below the median income of that area.
- Very low income is defined as 50% or below the median income of that area. What is a Section 3 business concern?
A business that:
- Is 51 percent or more owned by Section 3 residents;
- Employs Section 3 residents for at least 30 percent of its full-time, permanent staff; or
Provides evidence of a commitment to subcontract to Section 3 business concerns, 25 percent or more of the dollar amount of the awarded contract. What programs are covered? Section 3 applies to HUD-funded Public and Indian Housing assistance for development, operating, and modernization expenditures. Section 3 also applies to certain HUD-funded Housing and Community Development projects that complete housing rehabilitation, housing construction, and other public construction.