affordable housing construction

HUD Section 3: Hiring Preferences for Low-Income Residents on HUD-Assisted Construction

Section 3 of the Housing and Urban Development Act requires contractors on HUD-assisted construction projects to provide economic opportunities — jobs, training, and contracting — to low-income residents of the project area. The requirements flow down through the contracting tiers, the compliance reporting is quarterly, and missing the benchmarks can cost a contractor future HUD work. For contractors entering HUD-assisted markets, Section 3 obligations are specific, real, and distinct from other federal compliance regimes.