Section 3 FAQ

If a project funded with housing and community development financial assistance is initially below the $200,000 threshold then during construction, a change order raises the total cost over the threshold, do the Section 3 requirements apply to the project?  If Section 3 does apply, when will the tracking of labor hours for reporting purposes need to begin?

Date Published: November 2021

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A change order is typically not anticipated. Therefore, if the financial assistance exceeds the $200,000 threshold because of a change order, Section 3 does not apply. However, for existing projects (e.g., projects with planned phases) which increases housing and community development funding over time, Section 3 will apply if the threshold is met for the total sum of financial assistance provided across all phases.

Tags: Applicability