As a follow up to our March 24, 2015 and April 1, 2015 posts, the U.S. Department of Housing and Urban Development (HUD) published a notice updating the interim regulation at 24 CFR Part 135, which provides for compliance with Section 3 of the Housing and Urban Development Act of 1968 (Section 3). The purpose of Section 3 is to ensure that when employment or contracting opportunities are generated because a covered project or activity necessitates the employment of additional persons or the awarding of contracts for work, preference will be given to low- and very low-income persons (Section 3 residents) or business concerns (Section 3 businesses) residing in the community where the project is located.

Ballard Spahr provided comments to the proposed rule indicating its support for many of HUD’s proposals and suggesting ways to further improve the proposals.

For more in depth coverage on the notice, please see Ballard Spahr’s legal alert.