On April 4, HUD will release two notices in the Federal Register related to Section 3. The first is a new proposed rule titled “Enhancing and Streamlining the Implementation of ‘Section 3’ Requirements for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses,” which would update the regulations implementing Section 3. The second is titled “Section 3 Benchmarks for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses,” that sets outcome benchmarks for meeting and following Section 3 requirements. HUD also hosted a call the morning of April 3 on the proposed rule. NAHRO was the only participant to ask questions about the proposed rule on the call, specifically about changes to the definition of a Section 3 business, and the impact of the proposed rule on small agencies.
According to HUD, “[t]he purpose of Section 3 is to ensure that employment, training, contracting, and other economic opportunities generated by certain HUD financial assistance are directed to low- and very low-income persons, particularly those who receive government assistance for housing, and for businesses to provide economic opportunities to low- and very low-income persons.” The proposed rule applies to HUD’s Public Housing program and other programs that provide HUD housing and community development assistance.