Notice2023-22183
Section 3 Benchmarks for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses
Primary source
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Published
October 5, 2023
Effective
November 6, 2023
Issuing agencies
Housing and Urban Development Department
Abstract
HUD's regulations require that HUD set Section 3 benchmarks by publishing a notification, subject to public comment, in the Federal Register and update the benchmarks no less frequently than once every three years by the same method of notification. This notice updates the 2020 version of the benchmark notice and requests public comment about the Section 3 benchmark goals.
Full Text
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<title>Federal Register, Volume 88 Issue 192 (Thursday, October 5, 2023)</title>
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[Federal Register Volume 88, Number 192 (Thursday, October 5, 2023)]
[Notices]
[Page 69219]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-22183]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6429-N-01]
Section 3 Benchmarks for Creating Economic Opportunities for Low-
and Very Low-Income Persons and Eligible Businesses
AGENCY: Office of the Assistant Deputy Secretary for Field Policy and
Management, HUD.
ACTION: Notification of benchmarks.
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SUMMARY: HUD's regulations require that HUD set Section 3 benchmarks by
publishing a notification, subject to public comment, in the Federal
Register and update the benchmarks no less frequently than once every
three years by the same method of notification. This notice updates the
2020 version of the benchmark notice and requests public comment about
the Section 3 benchmark goals.
DATES: Effective Date: November 6, 2023.
FOR FURTHER INFORMATION CONTACT: Nathan Roush, Program Analyst, Office
of Field Policy and Management, Department of Housing and Urban
Development, Five Points Plaza, 40 Marietta St NW, Atlanta, GA 30303,
telephone number 678-732-2045 (this is not a toll-free number). General
email inquiries regarding Section 3 may be sent to <a href="/cdn-cgi/l/email-protection#77241214031e181944371f021359101801"><span class="__cf_email__" data-cfemail="2a794f495e434544196a425f4e044d455c">[email protected]</span></a>.
HUD welcomes and is prepared to receive calls from individuals who are
deaf or hard of hearing, as well as individuals with speech or
communication disabilities. To learn more about how to make an
accessible telephone call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
SUPPLEMENTARY INFORMATION:
I. Background
Section 3 of the Housing and Urban Development Act of 1968, as
amended by the Housing and Community Development Act of 1992 (Section
3), contributes to the establishment of stronger, more sustainable
communities by ensuring 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 are recipients of government assistance for housing. HUD is
statutorily charged with the authority and responsibility to implement
and enforce Section 3 through regulation, which HUD has done through
the publication of the Section 3 final rule, titled ``Enhancing and
Streamlining the Implementation of Section 3 Requirements for Creating
Economic Opportunities for Low- and Very Low-Income Persons and
Eligible Businesses,'' 85 FR 61524 (``HUD's Section 3 Final Rule'').
This final rule is codified in 24 CFR part 75.
HUD's Section 3 regulations require the establishment of Section 3
benchmarks for Section 3 workers and Targeted Section 3 workers through
a document published in the Federal Register. 24 CFR 75.13(b) and
75.23(b). Consistent with these requirements, HUD published a benchmark
notice in the Federal Register on September 29, 2020, titled ``Section
3 Benchmarks for Creating Economic Opportunities for Low- and Very Low-
Income Persons and Eligible Businesses,'' 85 FR 60907. HUD's Section 3
regulations also require HUD to update the benchmarks through a
document published in the Federal Register, subject to public comment,
not less frequently than once every three years. 24 CFR 75.13(b)(1) and
75.23(b)(1).
II. Section 3 Benchmarks
HUD's Section 3 regulations require that in altering and updating
the established benchmark goals, HUD must consider Section 3 labor hour
data collected during the prior three-year period. 24 CFR 75.13(b)(1)
and 75.23(b)(1). After evaluation and consideration of the data
collected to date, HUD has determined that the available data is not a
sufficiently representative sample to support the alteration of the
current published benchmark goals or publication of aggregate labor
hour data. Therefore, the benchmark goals will continue to be the
ratios established in the original Section 3 benchmark notice published
September 29, 2020, and HUD will continue to support the labor hour
goal methodology contained therein.
HUD considered a number of factors in making this decision. Despite
being published on September 29, 2020, HUD's Section 3 final rule did
not go into effect until November 30, 2020, and compliance only began
to be required for activities and projects funded on or after July 1,
2021. This means that activities and projects funded prior to July 1,
2021, were not required to report labor hours under 24 CFR part 75,
which does not give HUD a full three years of data to review.
Additionally, the count of labor hours and evaluation of achievement of
benchmark goals are not determined until an activity or project is
completed. Given the varying duration of construction projects, a
number of larger Section 3 projects--those with higher numbers of labor
hours--funded after July 1, 2021, have not yet completed construction
and therefore have not reported final labor hours for Section 3 workers
or Targeted Section 3 workers. These factors, among others, have
contributed to initial reports containing limited data on a small
subset of projects, which HUD believes does not create a large- or
representative-enough sample of data to merit a change to the existing
benchmarks or publication of aggregate data on labor hours and the
proportion of recipients meeting benchmarks.
While HUD has decided not to change the benchmark goals for Public
Housing Financial Assistance and Section 3 Projects, HUD would like to
solicit public comment on any matters related to this notice,
generally, but specifically on the experience of grantees, contractors,
and other stakeholders in achieving the existing benchmark goals along
with any challenges faced or recommendations for appropriate benchmarks
for future updates. HUD will not be issuing a second notice regarding
the current Section 3 benchmarks unless the comments provide HUD with a
basis for making revisions to the benchmarks.
HUD will publish another notice to update Section 3 benchmarks no
later than three years after the publication of this notice, as
required by HUD's Section 3 regulations.
Michele Perez,
Assistant Deputy Secretary for Field Policy and Management.
[FR Doc. 2023-22183 Filed 10-4-23; 8:45 am]
BILLING CODE 4210-67-P
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