NLIHC to Offer Webinar for Residents of HUD Subsidized Housing on HUD’s Proposed Section 3 Rule, May 8

Earlier this month, HUD proposed long-awaited updates to the 1994 interim Section 3 rule. NLIHC invites residents of all HUD-subsidized housing programs for a webinar on the subsidized housing features of HUD’s proposed Section 3 rule changes on Wednesday, May 8 at 2:00 p.m. ET.

The purpose of Section 3 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 and training opportunities created go to low-income people, particularly those who are recipients of government assistance for housing. Preference for awarding contracts should also be given to businesses owned or controlled by low-income people or to businesses that hire them. 

Two Potential Positive Changes Proposed by HUD:

  • HUD proposes using a “benchmark” indicating that 30% of all “labor hours worked” is by “Section 3 workers” (25%) and “Targeted Section 3 workers” (5%). This would replace the current rule’s 30% “new hires” goal.  Learn what these new terms mean – and why they are an improvement – during the webinar. 
  • HUD proposes adding voucher households and households living in Section 8 properties with project-based rental assistance to the second-level priorities for employment and contracting opportunities. The priority is still residents of the public housing developments where HUD funds are spent.

Two Potential Negative Changes Proposed by HUD:

  • HUD would remove Section 3 monitoring and enforcement from HUD’s Office of Fair Housing and Equal Opportunity (FHEO), shifting monitoring and enforcement relating to public housing to the Office of Public and Indian Housing (PIH). 
  • HUD proposes eliminating any Section 3-specific complaint process.

The webinar will provide details, answer questions, and get your feedback on key issues.  After the webinar, NLIHC will provide a sample comment letter and urge you to submit your own comments. Comments are due June 3.

Register for the webinar at:

The webinar will be closed-captioned. To access closed captioning during the webinar, go to:

This webinar will be recorded and available after broadcast at:

NLIHC’s “Preliminary Summary of the Public Housing Portions of the Proposed Section 3 Rule” is at:

An easy-to-read version of the proposed rule is at:

An easy-to-read version of the proposed benchmark is at: