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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

  • Section 3 Worker Certification Form
  • Targeted Section 3 Worker Certification Form

Additional Resources

  • 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
  • Section 3 Opportunity Portal and Business Registry
    • The Opportunity Portal helps match Section 3 workers to jobs and training opportunities and Section 3 businesses to contracting opportunities.

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HOME Investment Partnerships Fund (HOME)

HOME provides resources for affordable housing to lower-income households.

National Housing Trust Fund (HTF)

Affordable rental housing for extremely low-income and very low-income households, including homeless families.

Community Development Block Grant (CDBG)

Grants to provide decent housing, a suitable living environment, and expanded economic opportunities.

Community Development Block Grant Disaster Recovery (CDBG-DR)

Funding for Nebraska communities recovering from disasters.