Klein Hornig Housing Alert – April 2019

HUD Publishes New Proposed Section 3 Rule to Direct Employment and Other Opportunities for Low- and Very Low-Income Persons

By. Adam Norlander

On April 4, 2019, HUD published a proposed regulation to implement the policies of Section 3 of the Housing and Urban Development Act of 1968, as amended (“Section 3”). The goal behind Section 3 is to ensure that employment and other economic opportunities generated by federal financial assistance for housing and community development programs is, to the greatest extent feasible, directed toward low- and very low-income persons, particularly recipients of government assistance. HUD’s current regulations at 24 CFR Part 135 were promulgated as an “interim” rule in 1994. Since then, HUD has undertaken several efforts to reform the Section 3 interim rule, but no final regulations have been issued. Senior HUD officials, including HUD Secretary Carson, indicate that HUD’s adoption of a final Section 3 rule is one of HUD’s top priorities.

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