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This document outlines the Section 3 requirements of the Housing and Urban Development Act concerning contracts, ensuring economic opportunities are directed to low-income persons, and includes compliance
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Who needs Section 3 Clause?

01
Individuals seeking assistance from housing and urban development programs.
02
Low-income families looking for support under federal programs.
03
Contractors working on federally funded projects who need to comply with Section 3 requirements.
04
Public housing residents looking to improve their economic opportunities.
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Section 3 Clause refers to a provision under the Housing and Urban Development Act that aims to ensure that employment and other economic opportunities generated by certain HUD financial assistance are directed toward low- and very low-income persons, particularly those who are recipients of this assistance.
Entities that receive funding from the U.S. Department of Housing and Urban Development (HUD) and those involved in projects utilizing HUD funds are required to file Section 3 Clause.
To fill out the Section 3 Clause, recipients must provide information regarding their compliance with Section 3 requirements, including the hiring of low-income individuals, and documentation of the efforts made to hire Section 3 residents and businesses.
The purpose of the Section 3 Clause is to promote economic opportunity for low- and very low-income individuals by ensuring that they have access to job opportunities created through HUD-funded projects.
Entities must report the number of Section 3 residents hired, the jobs created, and the efforts made to recruit these residents, as well as the results of those recruitment efforts, and any barriers to hiring that may have been encountered.
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