HUD’s Office of Policy Development and Research (PD&R) has posted an advance copy of the Section 3 proposed rule. The 99-page document has not yet been published in the Federal Register. A 60-day public comment period will open upon its publication.
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.” Since 1994, the Section 3 program has been governed by an interim regulation. For the first time in 20 years, HUD is proposing a new rule that would expand opportunities for public housing residents and low-income workers and increase contracting opportunities for local businesses. According to PD&R’s web page dedicated to the proposed rule:
The proposed rule clarifies definitions and provisions that are left to interpretation and eases barriers to reaching compliance for recipients of HUD funding. It ensures that public housing authorities and other grantees are implementing consistent procedures for determining which residents and businesses should be counted towards Section 3 compliance. The proposed rule also addresses a number of concerns expressed by stakeholders to HUD and codifies “best practices” implemented by high-performing grantees.
PD&R has also posted the following resources related to the proposed rule:
- A one-page fact sheet
- A four-page summary
- A 15-page regulatory impact assessment
- A 6-page document containing 14 specific questions for which HUD is requesting comments
Looking for further guidance? We can bring our Procurement and Section 3 seminar to your PHA. Email firstname.lastname@example.org for more information about our affordable onsite training options. And if you missed it the first time, check out our recent blog series on what you need to know about Section 3.