NLIHC has released a “Detailed Summary and Analysis of the Final Section 3 Regulations” and a “Brief Summary and Analysis of the Final Section 3 Regulations.” The former has regulation citations, quotes from the preamble to the final rule, as well as more detailed information. The latter is a more streamlined version. As previously reported (see Memo, 10/5), HUD published a final rule implementing the Section 3 obligations of public housing agencies (PHAs) and other recipients of HUD housing and community development funding. The final rule, published on September 29 and effective on November 30, adopts most of the problematic proposed rule, but does make three positive changes.
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.
Both summaries cover all of the key features of the final Section 3 rule, including the three positive changes along with major and minor remaining problems.
“Detailed Summary and Analysis of the Final Section 3 Regulations” is at: https://bit.ly/3dXxcnD
“Brief Summary and Analysis of the Final Section 3 Regulations” is at: https://bit.ly/2HoSmic
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
More information about the now-defunct Section 3 regulations is on page 7-75 of NLIHC’s 2020 Advocates’ Guide and on NLIHC’s public housing webpage.