Section 3 of the HUD Act (24CFR Part 135) is a beautiful piece of legislation. It was enacted in 1968 in response to the first Watts Riot of 1965. It was later enhanced after the 1992 Rodney King Riot. It requires recipients of HUD funding i.e. states, cities, housing authorities, counties, etc. to employ people living in public housing or under the poverty level to have preference on new jobs. Up to 25% of new HUD funded jobs should go to Section 3 residents via contracting Section 3 businesses on HUD funded projects. The intent is so American. Funding economic development and affordable housing for those in need should also offer employment to assist those in getting out of that public need. There was just one big problem with this program - no one was complying with it.