Section 3 Final Rule Training

Section 3 is a provision of the HUD Act of 1968 that promotes local economic development, neighborhood economic improvement, and individual self-sufficiency. To the greatest extent possible, Section 3 requires that recipients of certain HUD financial assistance provide job training and employment opportunities to low- or very low-income residents in connection with projects and activities in their neighborhoods.

This training discusses the key changes in the rule including:

  • Focusing on key outcome metrics, such as the sustained employment of individuals in targeted populations
  • Crediting retention of low- and very low-income employees and successful sustained employment in the reporting metrics
  • Aligning Section 3 reporting with standard business practices and payroll tracking methods
  • Allowing for tailored outcome benchmarks for different geographies and/or different projects
  • Reducing reporting requirements for grantees who are meeting outcome benchmarks
  • Integrating Section 3 oversight into the work of the program offices who are in regular contact with the grantees
  • Promoting the newly created portal to connect low- and very low-income people, who need jobs most, with businesses who have Section 3 job opportunities in their area

Training Objectives

This training:

  • Introduces the purpose and scope of Section 3
  • Details the Section 3 final rule and the key changes to the program
  • Identifies administrative and implementation requirements as a result of the Section 3 final rule
  • Describes new Section 3 reporting requirements
  • Identifies relevant resources

Section 3 Final Rule

This rule became effective November 30, 2020. The new Section 3 final rule is designed to improve a focus on economic opportunity outcomes while simultaneously reducing the regulatory burden on those entities that receive those funds.

Training Materials

The following materials are from sessions delivered over a three-day period in 2021 discussing the new Section 3 final rule found at 24 CFR Part 75. During the live sessions, attendees participated in break out sessions to review the accompanying exercises. The breakout sessions were not recorded, however; participants can download the exercises with answer key and review on their own. Upon completion, participants may get credit for the entire training series.

Find Training by Date and Get Credit.

Day 1

Gain a better understanding of the final rule such as the purpose and goals, key changes, and reporting requirements.

Recording | Slides | Transcript

Day 2

Learn about project planning and implementation such as considerations for hiring eligible and qualified workers and contracting with eligible Section 3 businesses.

Recording | Slides | Transcript

Day 3

Understand Section 3 program oversight, recordkeeping requirements, and how to properly file Section 3 complaints.

Recording | Slides | Transcript