On January 23, the Office of Information and Regulatory Affairs (OIRA) at the Office of Management and Budget (OMB) completed its review of the long-awaited proposed Section 3 rule. The proposed rule is now at HUD waiting publication in the Federal Register.
The purpose of Section 3 of the Housing and Urban Development Act of 1968 is to ensure that when HUD assists housing and community development projects, preference for some of the new jobs, training, and contracting opportunities that are created go to low income people and to the businesses that hire them, “to the greatest extent feasible.”
When the proposed rule is published, NLIHC will analyze it and prepare a summary of the key provisions.
The OMB abstract of the proposed rule states that it would update the existing rule to:
- Reflect changes in the design and implementation of HUD programs subject to Section 3,
- Clarify the obligations of covered recipient agencies, and
- Simplify HUD's Section 3 complaint processing procedures.
The existing Section 3 regulations reflect modifications made in 1994 in response to changes to the law in 1992. At the beginning of the current Administration, HUD stated that improved Section 3 compliance and enforcement would be a priority. On August 24, 2010, HUD’s Office of Fair Housing and Equal Opportunity (FHEO), which administers Section 3, held a listening session at which NLIHC, other advocates, and various other stakeholders participated (see Memo, 8/27/10). During the ensuing years, NLIHC and other advocates communicated ideas for improving Section 3 regulations to FHEO.
Notice that OIRA completed review of the proposed Section 3 rule, along with the OIRA abstract, is at http://www.reginfo.gov/public/do/eoReviewSearch
More information about Section 3 is on page 265 of NLIHC’s 2014 Advocates’ Guide, http://nlihc.org/sites/default/files/2014AG-265.pdf