Section 3 FAQ

For projects that include materials and labor, does Section 3 apply to the dollar amount of the labor or the complete dollar amount of the project?

Date Published: September 2021

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When calculating if the project exceeds the threshold requirement, you should consider the total amount of HUD financial assistance to the project. If Section 3 applies, it will apply to the complete dollar amount of the project, with the exception that Section 3 does not apply to contracts for materials only. See 24 CFR § 75.3(b).

Tags: Applicability

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