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HUD/HUDSEC RIN: 2501-AD87 Publication ID: Fall 2019 
Title: Enhancing and Streamlining the Implementation of "Section 3" Requirements for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses 
Abstract:

This rule revises HUD's regulations for Section 3 of the Housing and Urban Development Act of 1968, as amended by the Housing and Community Development Act of 1992 (Section 3), which ensures that employment, training, and contracting 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 that provide economic opportunities to these persons. HUD’s regulations implementing the requirements of Section 3 have not been updated since 1994 and are not as effective at promoting economic opportunity for low-income persons as HUD believes they could be.  This rule updates HUD’s Section 3 regulations to streamline reporting requirements by aligning the reporting with standard business practice; amending the applicability section; updating reporting and adding new outcome benchmarks; and integrating Section 3 into program enforcement. The purpose of these changes is to reduce regulatory burden, increase compliance with Section 3 requirements, and increase Section 3 opportunities for low-income persons. 

 
Agency: Department of Housing and Urban Development(HUD)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
EO 13771 Designation: Deregulatory 
CFR Citation: 24 CFR 5, 14, 75, 91, 92, 93, 135, 266    570, 576, 578, 905, 964, 983, and 1000     (To search for a specific CFR, visit the Code of Federal Regulations.)
Legal Authority: 12 U.S.C. 1701u    42 U.S.C. 1450    42 U.S.C. 3301    42 U.S.C. 3535(d)   
Legal Deadline:  None
Timetable:
Action Date FR Cite
NPRM  04/04/2019  84 FR 13177   
NPRM Comment Period End  06/03/2019 
Final Rule  02/00/2020 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: Undetermined 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Merrie Nichols-Dixon
Deputy Director, Office of Policy, Programs and Legislative Initiatives
Department of Housing and Urban Development
Office of the Secretary
451 Seventh Street SW,
Washington, DC 20410
Phone:202 402-4673

Thomas R. Davis
Director, Office of Recapitalization, Office of Housing
Department of Housing and Urban Development
Office of the Secretary
451 Seventh Street SW,
Washington, DC 20410
Phone:202 708-0001

Virginia Sardone
Director, Office of Affordable Housing Programs, Office of Community Planning and Development
Department of Housing and Urban Development
Office of the Secretary
451 Seventh Street SW,
Washington, DC 20410
Phone:202 708-2684