Final rule · 2026-03002

Section 3 Project Threshold Updates for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses

The Section 3 rule "Enhancing and Streamlining the Implementation of Section 3 Requirements for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses" published in the Federal Register on September 29, 2020, includes a requirement that the HUD Secretary update Section 3 project thresholds "not less than once every 5 years based on a national construction cost inflation factor through Federal Register notice not subject to public comment." This notice serves as an update of the 2020 version of the final rule, discusses the establishment of a national construction cost inflation factor for Section 3 projects, and establishes new Section 3 project thresholds.