2019-06495: Enhancing and Streamlining the Implementation of “Section 3” Requirements for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses

Summary

Section 3 of the Housing and Urban Development Act of 1968, as amended by the Housing and Community Development Act of 1992 (Section 3), contributes to the establishment of stronger, more sustainable communities by ensuring that employment and other economic opportunities generated by Federal financial assistance for housing and community development programs are, to the greatest extent feasible, directed toward low- and very low-income persons, particularly those who receive government assistance for housing. In accordance with statutory authority, HUD is charged with the responsibility to implement and enforce Section 3. HUD's regulations implementing the requirements of Section 3 have not been updated since 1994 and are not as effective as HUD believes they could be. This proposed rule would update HUD's Section 3 regulations to create more effective incentives for employers to retain and invest in their low- and very low-income workers, streamline reporting requirements by aligning them with typical business practices, provide for program-specific oversight, and clarify the obligations of entities that are covered by Section 3. The purpose of these changes is to increase the impact of the Section 3 requirements for low- and very low-income persons, increase compliance with Section 3 requirements, and reduce regulatory burden. HUD is also publishing elsewhere in this issue of the Federal Register a proposed notification for comment that would set initial benchmarks for measuring Section 3 compliance with the final rule.

The agency’s own summary, as published.

What this changes

Amends 15 parts of the Code of Federal Regulations — the standing rules this notice rewrites.

• 24 CFR 5 General HUD Program Requirements; Waivers
• 24 CFR 14 Implementation of the Equal Access to Justice Act in Administrative Proceedings
• 24 CFR 75 Economic Opportunities for Low- and Very Low-Income Persons
• 24 CFR 91 Consolidated Submissions for Community Planning and Development Programs
• 24 CFR 92 Home Investment Partnerships Program
• 24 CFR 93 Housing Trust Fund
• 24 CFR 135
• 24 CFR 266 Housing Finance Agency Risk-Sharing Program for Insured Affordable Multifamily Project Loans
• 24 CFR 570 Community Development Block Grants
• 24 CFR 576 Emergency Solutions Grants Program
• 24 CFR 578 Continuum of Care Program
• 24 CFR 905 The Public Housing Capital Fund Program
• 24 CFR 964 Tenant Participation and Tenant Opportunities in Public Housing
• 24 CFR 983 Project-Based Voucher (PBV) Program
• 24 CFR 1000 Native American Housing Activities