Evidence from credible sources supports the statement as accurate. Learn more in Methodology.
Recipients of eligible HUD housing and community development funds are required by Section 3 to provide job training, employment, and contracting opportunities to low-income residents and businesses, per the statute.
Section 3 is codified at 12 U.S.C. § 1701u and is explicitly described as a provision of the Housing and Urban Development Act of 1968, enacted as Pub. L. 90-448 § 3. The statute directs the HUD Secretary to require that public and Indian housing agencies and other recipients of specified housing and community development assistance use “best efforts” and, “to the greatest extent feasible,” give training, employment, and contracting opportunities generated by that assistance to low- and very low‑income persons and to business concerns that provide them economic opportunities, primarily within the project’s metropolitan area or county. HUD’s own program description states that the Section 3 program “requires recipients of HUD funding to direct employment, training, and contracting opportunities to low-income individuals and the businesses that employ these persons within their community,” and that it is a provision of the HUD Act of 1968. HUD policy materials further describe Section 3 as ensuring that HUD-funded job training and contracts are provided to local low-income residents and businesses that employ them. This evidence shows the claim accurately summarizes both the origin and functional requirements of Section 3, so the verdict is True because Section 3 is indeed a provision of the 1968 HUD Act that requires recipients of certain HUD housing and community development funds to direct job training, employment, and contracting opportunities to low-income residents and related businesses in their communities, subject to feasibility and best‑efforts standards.