CDBG Entitlement FAQ

A project funded by FHWA and CDBG is in conflict with Section 3 requirements for preferential treatment. How do we resolve this conflict?

Date Published: May 2015

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You are correct. There is a conflict with Section 3 which requires that preferential hiring be afforded to those living in the project area and FHWA regulations that prohibit preferential hiring. In 2010, FHWA developed a livability initiative to better coordinate federal aid highway programs with grant programs administered by HUD and EPA. Under this initiative, FHWA may waive on a case by case basis the prohibition on local hiring preferences to accommodate Section 3 requirements. Please view the Construction Program Guide for information on the initiative and examples of projects.

Tags: CDBG Entitlement Program Section 3

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