HUD Boosts Funding Limits for Low-Income Job Opportunities
Published Date: 2/13/2026
Rule
Summary
Starting March 16, 2026, HUD is updating the money limits for projects that help low-income people and businesses get jobs and contracts. These new thresholds reflect rising construction costs and make sure more opportunities go to those who need them most. If you work in housing or community development, these changes could affect your projects and funding.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Section 3 Thresholds Raised to $300K / $150K
Starting March 16, 2026, HUD raises the Section 3 project funding thresholds. Projects that receive HUD housing and community development assistance must now exceed $300,000 to be a Section 3 project (rounded from about $299,200), and projects receiving Lead Hazard Control and Healthy Homes assistance must now exceed $150,000 (rounded from about $149,600). HUD says the rounded numbers make external compliance and internal administration easier.
Public Housing Assistance Still Always Covered
This notice does not apply to public housing financial assistance. Public housing has no dollar threshold and any amount of public housing financial assistance will continue to trigger Section 3 compliance requirements.
Thresholds Tied to Construction Inflation (49.6%)
HUD will update Section 3 project thresholds at least once every 5 years using a national construction cost inflation factor. HUD calculated that construction costs rose about 49.6% from 2017 to 2023 using Bureau of Labor Statistics data, and used that factor to update the thresholds.
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