HUD recently published 24 CFR Part 75 to update the Section 3 regulations that were previously at 24 CFR Part 135. These new regulations went into effect on November 30, 2020 and compliance with the new rules will be required starting on July 1, 2021 at the earliest. The new rule can be found at the following link: https://ecfr.io/Title-24/Part-75.
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. This new rule updates 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.
To assist in the transition from the old regulation to the new Part 75 regulations, the Office of Field Policy and Management (FPM) shared a Section 3 FAQ document which should provide answers to a number of questions that you may have about the transition and the workings of the new rule. Please feel free to openly share this FAQ document with any interested stakeholders. HUD is in the process of getting this document published online as well, but wanted to get a copy into your hands as soon as possible.
The Office of Field Policy and Management (FPM) understands that this document may not address every question you have about the transition to the new Part 75 regulations, and therefore we anticipate that this FAQ will be a living and evolving document with new questions added for guidance as we receive them. If you would like to ask additional or clarifying questions, please feel free to contact the Section 3 team at [email protected].
Section 3 FAQs-3.25.21.pdf