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 and this video will help to walk 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.

• Section 3 PDF Slides
• Section 3 Training Video

Content current as of February 23, 2024.