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Section 3
Section 3 is a provision of the Housing and Urban Development Act of 1968 that helps foster local economic development, job opportunities, and self-sufficiency. Section 3 ensures employment and other economic opportunities generated by certain HUD assistance goes to the “greatest extent feasible” to low- and very low-income persons and businesses. Section 3 goals are applicable pursuant to 24 CFR Part 75 as dictated by HUD. As a recipient of HUD funding, Nebraska tracks and reports on how its programs benefit low-and very low-income individuals.
DED strives to help Nebraskans achieve an improved quality of life through the development of better communities. HUD’s mission strives to create strong, sustainable, inclusive communities and quality affordable homes for all. In keeping with these ideals, DED wants to ensure that HUD-funded projects maximize community benefits and economic opportunities for low-income persons and households.
In many respects, Employment Opportunities for Low-Income People (Section 3) encourages subrecipients to document procedures and practices currently used, or to better utilize those currently available in order to maximize community benefits and economic opportunities for low- and very low-income persons.
Entities awarded HUD funds, administered by DED per their subrecipient agreement or similar contract, may be subject to compliance with Section 3. Furthermore, entities awarded of federal assistance that are not subject to Section 3 are encouraged to consider ways to support the purpose of Section 3.
Section 3 Final Rule
HUD published a final rule updating requirements related to Section 3 of the Housing and Urban Development Act of 1968, as amended. The final rule was published on September 29, 2020 and became effective on November 30, 2020. As of November 30, 2020, the requirements of 24 CFR part 135 no longer apply to new commitments. Section 3 projects with commitments made on or after November 30, 2020 must comply with 24 CFR part 75. Section 3 projects with commitments made before November 30, 2020 must continue to comply with the requirements of 24 CFR part 135. Commitment date is program-specific. Consult with a DED representative to confirm your project’s commitment date to determine which Section 3 rules apply. DED issued a policy memorandum on October 8, 2021 outlining the updates to Section 3.
DED Forms
| Title | File Type | Date |
|---|---|---|
| Contractor Hour Log | Excel | May 19, 2022 |
| Contractor Permanent Workforce Certification Form | Word | May 19, 2022 |
| Section 3 Business Concern Certification | May 19, 2022 | |
| Section 3 Worker and Targeted Section 3 Worker Self-Certification Form | May 19, 2022 |
Current Income Limits
Follow the link below and filter data by county or statewide.
Income Limits Datasets, Nebraska
If the link above no longer works please use Income Limits | HUD USER and navigate to the most current year, Query Tool, and click the button under Access Individual Income Limits Areas.
Additional Resources
The HUD Exchange houses extensive resources regarding Section 3, what follows are links to some of the key forms and tools.
- HUD Exchange: Section 3
- HUD Section 3 FAQs
- Find answers to frequently asked questions about Section 3 divided into topics such as:
- Applicability
- Certification
- Complaints
- Consistency with Other Laws
- Economic Opportunities Numerical Benchmarks
- Recipient Responsibilities
- Brochure for Workers and Businesses
- Find answers to frequently asked questions about Section 3 divided into topics such as:
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