New Update to Section 3 Rule in RAD Public Housing Conversions

New Update to Section 3 Rule in RAD Public Housing Conversions

Below, please find an update from HUD’s Rental Assistance Demonstration (RAD), via their RADBlast. This includes an update to the Section 3 rule, a statutory requirement designed to strengthen communities, reduce poverty, and increase economic self-sufficiency. Specifically, the rule ensures that employment and other economic opportunities generated by Federal financial assistance for housing and community development programs are, to the greatest extent feasible, directed toward low- and very low-income persons, particularly those who receive government assistance for housing. For more information, please the announcement below.

RADBlast! New Section 3 Rule in RAD Public Housing Conversions 

“Section 3” ensures that employment and other economic opportunities generated by Federal financial assistance for housing and community development programs are, to the greatest extent feasible, directed toward low- and very low-income persons, particularly those who receive government assistance for housing. In the process of making substantial improvements to public housing assets through RAD, PHAs have been able to create thousands of jobs for low-income workers and contracting opportunities for Section 3 businesses, which have been a powerful source of economic development in these communities.  

Last autumn, HUD updated the Section 3 rule in order to focus on economic opportunity outcomes while simultaneously reducing regulatory burden, improving Section 3’s effectiveness, streamlining some processes that have not yielded significant benefits, and encouraging HUD grantees to focus on sustained employment for low- and very low-income individuals. HUD has recently posted brief guidance describing the applicability of the new Section 3 rule to RAD conversions on the RAD Resource Desk. 

We will host a training on April 20, 2021 at 3:30 EST to provide an overview of the rule and its implementation in RAD conversions. Please register here.

-The RAD Team