New HUD Section 3 Requirements

Section 3 is a provision of the Housing and Urban Development Act of 1968. The purpose of Section 3 is to ensure that employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, and consistent with existing Federal, State, and local laws and regulations, be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing, and to business concerns which provide economic opportunities to low- and very low-income persons.


There are new Section 3 requirements now in effect for CDBG funded projects. The definitions of a Section 3 Worker and Section 3 Business Concern have changed. In addition, contractors must now report on hours worked by Section 3 workers and make efforts to meet new benchmarks for those hours worked. The focus is no longer on new hires.


The video at https://www.youtube.com/watch?v=7_khTGDLauw reviews the Section 3 New Rule requirements and is applicable to Community Development Block Grant Disaster Recovery (CDBG-DR) and Community Development Block Grant Mitigation (CDBG-MIT) grantees.


Contact us at 985-900-2320 to learn how we can assist you in complying with the new Section 3 requirements.

Prepared by: Paul Barcelona, P.E., President, Artovia






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