Section 3

Section 3 is a provision of the Housing and Urban Development Act of 1968. Its purpose is to ensure that employment 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, as well as to business concerns that provide economic opportunities to such individuals¹²³.

Here are the key points about Section 3:

Objective: To create stronger, more sustainable communities by directing employment and economic opportunities toward low-income individuals.
Applicability: Section 3 applies to training, employment, and contracting opportunities arising in connection with HUD-funded housing rehabilitation, housing construction, or other public construction projects. It also covers opportunities related to both public housing and other Section 3 projects.
Requirements: Recipients of certain HUD financial assistance must, to the greatest extent feasible, provide these opportunities to low- and very low-income persons and businesses that support economic empowerment for such individuals.
Laws and Regulations:
- Statute: Section 3 of the Housing and Urban Development Act of 1968, as amended by the Housing and Community Development Act of 1992 (12 U.S.C § 1701u).
- Final Rule: “Enhancing and Streamlining the Implementation of Section 3 Requirements for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses” (effective since November 30, 2020)¹.
- Benchmark Notice: “Section 3 Benchmarks for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses” (outlining numeric goals for compliance)¹.

In summary, Section 3 aims to promote economic equity and ensure that HUD-funded projects benefit those who need it most. It’s a vital component in building inclusive and thriving communities.