HUD’s Office of Field Policy and Management (FPM) announced a new Section 3 landing page on the HUD Exchange. In addition, 62 new frequently asked questions (FAQs) were posted on that Section 3 page. Unfortunately, the FAQs are not presented in a single document; separate FAQs must be accessed one-by-one. Users can also access FAQs according to seven categories. NLIHC obtained a PDF covering all 62 FAQs from FPM and urged that it too be posted to the new Section 3 site. The landing page also contains a list of Section 3 FPM contacts, the final regulation, and indicates that a Section 3 Guidebook is in the works. To subscribe to the Section 3 HUD headquarters mailing list, visit https://bit.ly/3l3eIaH
Information about Section 3 is no longer on the Office of Fair Housing and Equal Opportunity’s (FHEO’s) website because the 2020 final Section 3 regulations shifted administration from FHEO to FPM (see Memo, 10/26/20).
The purpose of Section 3 of the Housing and Urban Development Act of 1968 is to ensure that when HUD funds are used to assist housing and community development projects, “to the greatest extent feasible” preference for some of the jobs, training, and contracting opportunities that are created go to low-income people, “particularly those who are recipients of government assistance for housing.” Another Section 3 obligation is to support businesses owned or controlled by low-income people or businesses that hire them. Public housing agencies (PHAs) and jurisdictions using Community Development Block Grant (CDBG), HOME Investment Partnerships program, and other HUD funds, must comply with Section 3 and ensure that contractors and subcontractors comply.
The new Section 3 landing page with the 62 FAQs is at: https://bit.ly/3yaFiT4
All 62 FAQs presented in a single document is at: https://bit.ly/3i8ZtLx
The Federal Register version of the final Section 3 rule is at: https://bit.ly/33e0Vos
An easier to read version of the final rule is at: https://bit.ly/30mPLf7
NLIHC’s public housing webpage has archival information about the 1994 interim Section 3 regulation and other guidance material as well as two summaries of the Final Section 3 regulations:
- NLIHC’s “Detailed Summary and Analysis of the Final Section 3 Regulations” is at: https://bit.ly/3dXxcnD
- NLIHC’s “Brief Summary and Analysis of the Final Section 3 Regulations” is at: https://bit.ly/2HoSmic
More information about Section 3 is on page 7-45 of NLIHC’s 2021 Advocates’ Guide.