{"abstract":"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 final 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. These changes will increase Section 3's impact for low- and very low- income persons, increase compliance with Section 3 requirements, and reduce regulatory burden.","action":"Final rule.","agencies":[{"raw_name":"DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT","name":"Housing and Urban Development Department","id":228,"url":"https://www.federalregister.gov/agencies/housing-and-urban-development-department","json_url":"https://www.federalregister.gov/api/v1/agencies/228","parent_id":null,"slug":"housing-and-urban-development-department"}],"body_html_url":"https://www.federalregister.gov/documents/full_text/html/2020/09/29/2020-19185.html","cfr_references":[{"chapter":null,"citation_url":null,"part":"5","title":24},{"chapter":null,"citation_url":null,"part":"14","title":24},{"chapter":null,"citation_url":null,"part":"75","title":24},{"chapter":null,"citation_url":null,"part":"91","title":24},{"chapter":null,"citation_url":null,"part":"92","title":24},{"chapter":null,"citation_url":null,"part":"93","title":24},{"chapter":null,"citation_url":null,"part":"135","title":24},{"chapter":null,"citation_url":null,"part":"266","title":24},{"chapter":null,"citation_url":null,"part":"570","title":24},{"chapter":null,"citation_url":null,"part":"574","title":24},{"chapter":null,"citation_url":null,"part":"576","title":24},{"chapter":null,"citation_url":null,"part":"578","title":24},{"chapter":null,"citation_url":null,"part":"905","title":24},{"chapter":null,"citation_url":null,"part":"964","title":24},{"chapter":null,"citation_url":null,"part":"983","title":24},{"chapter":null,"citation_url":null,"part":"1000","title":24}],"citation":"85 FR 61524","comment_url":null,"comments_close_on":null,"correction_of":null,"corrections":[],"dates":"Effective Date: November 30, 2020.","disposition_notes":null,"docket_ids":["Docket No. FR-6085-F-03"],"dockets":[{"supporting_documents":[],"agency_name":"HUD","documents":[{"comment_count":null,"comment_start_date":null,"updated_at":"2025-05-20T23:33:37.703-04:00","comment_url":"https://www.regulations.gov/commenton/HUD-2019-0019-0070","allow_late_comments":false,"id":"HUD-2019-0019-0070","comment_end_date":null,"regulations_dot_gov_open_for_comment":false}],"supporting_documents_count":0,"id":"HUD-2019-0019","title":"FR–7092–N-07 30-Day Notice of Proposed Information Collection: Enhancing and Streamlining the Implementation of Section 3 Requirements for Creating Opportunities for Low- and Very-Low Income Persons and Eligible Businesses; OMB Control No.: 2501–0041"}],"document_number":"2020-19185","effective_on":"2020-11-30","end_page":61568,"executive_order_notes":null,"executive_order_number":null,"full_text_xml_url":"https://www.federalregister.gov/documents/full_text/xml/2020/09/29/2020-19185.xml","html_url":"https://www.federalregister.gov/documents/2020/09/29/2020-19185/enhancing-and-streamlining-the-implementation-of-section-3-requirements-for-creating-economic","images":{"ER29SE20.077":{"large":"https://img.federalregister.gov/ER29SE20.077/ER29SE20.077_large.png","original_size":"https://img.federalregister.gov/ER29SE20.077/ER29SE20.077_original_size.png"},"ER29SE20.076":{"large":"https://img.federalregister.gov/ER29SE20.076/ER29SE20.076_large.png","original_size":"https://img.federalregister.gov/ER29SE20.076/ER29SE20.076_original_size.png"}},"images_metadata":{"ER29SE20.077":{"large":{"identifier":"ER29SE20.077","content_type":"image/png","size":32893,"width":823,"sha":"6db15c95bcb129b3121b55e011d7c7ff","url":"https://img.federalregister.gov/ER29SE20.077/ER29SE20.077_large.png","height":723},"original_size":{"identifier":"ER29SE20.077","content_type":"image/png","size":485248,"width":3760,"sha":"03c5132bd0d924c0f5ecfecefbd227ba","url":"https://img.federalregister.gov/ER29SE20.077/ER29SE20.077_original_size.png","height":3304}},"ER29SE20.076":{"large":{"identifier":"ER29SE20.076","content_type":"image/png","size":32904,"width":457,"sha":"4c0bcbac16710d65df565e9c68a9b94a","url":"https://img.federalregister.gov/ER29SE20.076/ER29SE20.076_large.png","height":447},"original_size":{"identifier":"ER29SE20.076","content_type":"image/png","size":192989,"width":1626,"sha":"b82a69f270d76d41b1a0af9beb43ca1b","url":"https://img.federalregister.gov/ER29SE20.076/ER29SE20.076_original_size.png","height":1592}}},"json_url":"https://www.federalregister.gov/api/v1/documents/2020-19185?publication_date=2020-09-29","mods_url":"https://www.govinfo.gov/metadata/granule/FR-2020-09-29/2020-19185/mods.xml","not_received_for_publication":null,"page_length":45,"page_views":{"count":10368,"last_updated":"2026-07-28 16:15:03 -0400"},"pdf_url":"https://www.govinfo.gov/content/pkg/FR-2020-09-29/pdf/2020-19185.pdf","presidential_document_number":null,"proclamation_number":null,"public_inspection_pdf_url":"https://public-inspection.federalregister.gov/2020-19185.pdf?1601297118","publication_date":"2020-09-29","raw_text_url":"https://www.federalregister.gov/documents/full_text/text/2020/09/29/2020-19185.txt","regulation_id_number_info":{"2501-AD87":{"issue":"202004","html_url":"https://www.federalregister.gov/regulations/2501-AD87/enhancing-and-streamlining-the-implementation-of-section-3-requirements-for-creating-economic-opport","title":"Enhancing and Streamlining the Implementation of \"Section 3\" Requirements for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses","xml_url":"http://www.reginfo.gov/public/do/eAgendaViewRule?pubId=202004&RIN=2501-AD87&operation=OPERATION_EXPORT_XML","priority_category":"Other Significant"}},"regulation_id_numbers":["2501-AD87"],"regulations_dot_gov_info":{"supporting_documents":[],"regulatory_plan":{"html_url":"https://www.federalregister.gov/regulations/2501-AD87/enhancing-and-streamlining-the-implementation-of-section-3-requirements-for-creating-economic-opport","title":"Enhancing and Streamlining the Implementation of \"Section 3\" Requirements for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses"},"comments_count":0,"agency_id":"HUD","comments_url":"https://www.regulations.gov/docketBrowser?rpp=50&so=DESC&sb=postedDate&po=0&dct=PS&D=HUD-2019-0019","supporting_documents_count":0,"docket_id":"HUD-2019-0019","document_id":"HUD-2019-0019-0070","regulation_id_number":"2501-AD87","title":"FR–7092–N-07 30-Day Notice of Proposed Information Collection: Enhancing and Streamlining the Implementation of Section 3 Requirements for Creating Opportunities for Low- and Very-Low Income Persons and Eligible Businesses; OMB Control No.: 2501–0041","checked_regulationsdotgov_at":"2025-05-22T04:55:06Z"},"regulations_dot_gov_url":null,"significant":true,"signing_date":null,"start_page":61524,"subtype":null,"title":"Enhancing and Streamlining the Implementation of Section 3 Requirements for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses","toc_doc":"Enhancing and Streamlining the Implementation of Section 3 Requirements for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses","toc_subject":null,"topics":["Administrative practice and procedure","Aged","American Samoa","Claims","Community development","Community development block grants","Community facilities","Crime","Equal access to justice","Equal employment opportunity","Government contracts","Grant programs-Indians","Grant programs-education","Grant programs-housing and community development","Grant programs-social programs","Guam","Homeless","Housing","Indians","Individuals with disabilities","Intergovernmental relations","Lawyers","Loan programs-housing and community development","Low and moderate income housing","Manufactured homes","Mortgage insurance","Northern Mariana Islands","Pacific Islands Trust Territory","Penalties","Pets","Public housing","Puerto Rico","Rent subsidies","Reporting and recordkeeping requirements","Small businesses","Social security","Student aid","Unemployment compensation","Virgin Islands","Wages"],"type":"Rule","volume":85}