Section 3 New Rule Guidance for CDBG-DR and CDBG-MIT Grantees

This video reviews the Section 3 New Rule requirements and is applicable to Community Development Block Grant Disaster Recovery (CDBG-DR) and Community Development Block Grant Mitigation (CDBG-MIT) grantees. The information in this video is based on the Section 3 Final Rule which was published on September 29, 2020, and a companion notice, entitled Section 3 Benchmarks for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses, (85 FR 60907) ("Benchmark Notice"), which outlines the numeric goals for compliance with the new Section 3 requirements. The Final Rule became effective on November 30, 2020 and is codified at 24 CFR part 75.

HUD will no longer require grantees to report Section 3 compliance data annually in the Section 3 Performance Evaluation and Reporting System (SPEARS) for Section 3 projects. The Final Rule requires each grantee to report on Section 3 compliance per the reporting requirements for each applicable program. CDBG-DR and CDBG-MIT grantees will report activity level data in DRGR. This video walks grantees through that process.

If there are amendments made to the Final Rule or a change in guidance, HUD will post additional material and resources to assist grantees with meeting the Section 3 requirements.

U.S. Department of Housing and Urban Development (HUD)