In his inaugural address, President Trump made a solemn promise: “The forgotten men and women of this Nation will be forgotten no more.” Those words ring true today and are directly reflected in the administration’s updated Section Three rule.
Creating economic opportunity and setting people on a path to self-sufficiency have been among my top priorities as Secretary of the U.S. Department of Housing and Urban Development. To support these goals, we have taken action to ensure that those living in underserved communities have access to quality affordable housing and sustained employment.
One such action HUD has taken is our revision of the Section Three rule. Section Three mandates that economic opportunities (jobs) created as a result of HUD funding are directed to low- and very low-income individuals, particularly those who receive federal assistance.
HUD funding is more than an investment in affordable housing or community development — it’s an investment in people. Every year, HUD provides billions of dollars in financing for housing and economic development projects in underserved communities. This funding directly creates job opportunities in construction and other related fields. We believe these jobs should go to individuals residing in those same underserved communities, and our new Section Three rule will make this a reality.
Over the last several years, HUD has worked closely with Public Housing Authorities, developers, grantees, multifamily property owners, and other stakeholders to shape our improvements to Section Three. Section Three has not been meaningfully updated or addressed in over 25 years. Our stakeholders have been a tremendous asset in making this effort a success, and they have assisted us at every turn in crafting a rule that better benefits those we serve.
This new and improved rule incorporates several changes that streamline processes and make Section Three more efficient and effective for our stakeholders. The rule aligns reporting requirements with standard business practices and payroll tracking, credits businesses with the hiring and sustained employment of low- and very low-income individuals, and refocuses efforts on the employment of individuals in identified low-income communities.
We also recognize that burdensome governmental oversight stifles economies — and the poorest among us tend to pay the price. In addition to ensuring that more HUD-assisted households are able to secure long-term employment and start the path toward self-sufficiency, the revised rule will also streamline reporting requirements for grantees and simplify compliance procedures.
Trump and I are committed to creating those pathways for everyone.
I have always said that HUD’s true measure of success is not how many individuals we can get onto our assistance programs, but how many we can lift out of government assistance and set on the path to self-sufficiency.
Under Trump’s leadership, there is a rising tide lifting all boats.
Ben Carson is secretary of the Department of Housing and Urban Development.
