US Code

Public Law 119-73 (01/23/2026)

12 U.S.C. § 1701u

Economic opportunities for low- and very low-income persons

(a)

Findings

The Congress finds that—
(1)
Federal housing and community development programs provide State and local governments and other recipients of Federal financial assistance with substantial funds for projects and activities that produce significant employment and other economic opportunities;
(2)
low- and very low-income persons, especially recipients of government assistance for housing, often have restricted access to employment and other economic opportunities;
(3)
the employment and other economic opportunities generated by projects and activities that receive Federal housing and community development assistance offer an effective means of empowering low- and very low-income persons, particularly persons who are recipients of government assistance for housing; and
(4)
prior Federal efforts to direct employment and other economic opportunities generated by Federal housing and community development programs to low- and very low-income persons have not been fully effective and should be intensified.
(b)

Policy

It is the policy of the Congress and the purpose of this section to ensure that the employment and other economic opportunities generated by Federal financial assistance for housing and community development programs shall, to the greatest extent feasible, be directed toward low- and very low-income persons, particularly those who are recipients of government assistance for housing.

(c)

Employment

(1)

Public and Indian housing program

(A)

In general

section 1437c of title 42section 1437g of title 42l1

1 See References in Text note below.
The Secretary shall require that public and Indian housing agencies, and their contractors and subcontractors, make their best efforts, consistent with existing Federal, State, and local laws and regulations, to give to low- and very low-income persons the training and employment opportunities generated by development assistance provided pursuant to , operating assistance provided pursuant to , and modernization grants provided pursuant to section 1437 of title 42.

(B)

Priority

The efforts required under subparagraph (A) shall be directed in the following order of priority:
(i)
To residents of the housing developments for which the assistance is expended.
(ii)
To residents of other developments managed by the public or Indian housing agency that is expending the assistance.
(iii)
section 3226 of title 29 To participants in YouthBuild programs receiving assistance under .
(iv)
To other low- and very low-income persons residing within the metropolitan area (or nonmetropolitan county) in which the assistance is expended.
(2)

Other programs

(A)

In general

In other programs that provide housing and community development assistance, the Secretary shall ensure that, to the greatest extent feasible, and consistent with existing Federal, State, and local laws and regulations, opportunities for training and employment arising in connection with a housing rehabilitation (including reduction and abatement of lead-based paint hazards), housing construction, or other public construction project are given to low- and very low-income persons residing within the metropolitan area (or nonmetropolitan county) in which the project is located.

(B)

Priority

section 3226 of title 29Where feasible, priority should be given to low- and very low-income persons residing within the service area of the project or the neighborhood in which the project is located and to participants in YouthBuild programs receiving assistance under .

(d)

Contracting

(1)

Public and Indian housing program

(A)

In general

section 1437c of title 42section 1437g of title 42l1The Secretary shall require that public and Indian housing agencies, and their contractors and subcontractors, make their best efforts, consistent with existing Federal, State, and local laws and regulations, to award contracts for work to be performed in connection with development assistance provided pursuant to , operating assistance provided pursuant to , and modernization grants provided pursuant to section 1437 of title 42, to business concerns that provide economic opportunities for low- and very low-income persons.

(B)

Priority

The efforts required under subparagraph (A) shall be directed in the following order of priority:
(i)
To business concerns that provide economic opportunities for residents of the housing development for which the assistance is provided.
(ii)
To business concerns that provide economic opportunities for residents of other housing developments operated by the public and Indian housing agency that is providing the assistance.
(iii)
section 3226 of title 29 To YouthBuild programs receiving assistance under .
(iv)
To business concerns that provide economic opportunities for low- and very low-income persons residing within the metropolitan area (or nonmetropolitan county) in which the assistance is provided.
(2)

Other programs

(A)

In general

In providing housing and community development assistance pursuant to other programs, the Secretary shall ensure that, to the greatest extent feasible, and consistent with existing Federal, State, and local laws and regulations, contracts awarded for work to be performed in connection with a housing rehabilitation (including reduction and abatement of lead-based paint hazards), housing construction, or other public construction project are given to business concerns that provide economic opportunities for low- and very low-income persons residing within the metropolitan area (or nonmetropolitan county) in which the assistance is expended.

(B)

Priority

section 3226 of title 29Where feasible, priority should be given to business concerns which provide economic opportunities for low- and very low-income persons residing within the service area of the project or the neighborhood in which the project is located and to YouthBuild programs receiving assistance under .

(e)

Definitions

For the purposes of this section the following definitions shall apply:
(1)

Low- and very low-income persons

section 1437a(b)(2) of title 42The terms “low-income persons” and “very low-income persons” have the same meanings given the terms “low-income families” and “very low-income families”, respectively, in .

(2)

Business concern that provides economic opportunities

The term “a business concern that provides economic opportunities” means a business concern that—
(A)
provides economic opportunities for a class of persons that has a majority controlling interest in the business;
(B)
employs a substantial number of such persons; or
(C)
meets such other criteria as the Secretary may establish.
(f)

Coordination with other Federal agencies

The Secretary shall consult with the Secretary of Labor, the Secretary of Health and Human Services, the Secretary of Commerce, the Administrator of the Small Business Administration, and such other Federal agencies as the Secretary determines are necessary to carry out this section.

(g)

Regulations

Not later than 180 days after , the Secretary shall promulgate regulations to implement this section.

Pub. L. 90–448, § 382 Stat. 476Pub. L. 91–152, title IV, § 40483 Stat. 395Pub. L. 93–383, title I, § 11888 Stat. 653Pub. L. 96–399, title III, § 32994 Stat. 1651Pub. L. 102–550, title IX, § 915106 Stat. 3878Pub. L. 109–281, § 2(d)(1)120 Stat. 1181Pub. L. 113–128, title V, § 512(p)128 Stat. 1711(, , ; , , ; , , ; , , ; , , ; , , ; , , .)

Editorial Notes

References in Text

lPub. L. 105–276, title V, § 522(a)112 Stat. 2564Section 1437 of title 42, referred to in subsecs. (c)(1)(A) and (d)(1)(A), was repealed by , , .

Codification

Section was enacted as part of the Housing and Urban Development Act of 1968, and not as part of the National Housing Act which comprises this chapter.

Pub. L. 102–550, referred to in subsec. (g), was in the original “the date of enactment of the National Affordable Housing Act Amendments of 1992”, and was translated as meaning the date of enactment of the Housing and Community Development Act of 1992, , which amended this section generally, to reflect the probable intent of Congress.

Amendments

Pub. L. 113–128, § 512(p)(1)(A)section 3226 of title 29section 2918a of title 292014—Subsec. (c)(1)(B)(iii). , substituted “participants in YouthBuild programs receiving assistance under ” for “participants in YouthBuild programs receiving assistance under ”.

Pub. L. 113–128, § 512(p)(1)(B)section 3226 of title 29section 2918a of title 29Subsec. (c)(2)(B). , substituted “participants in YouthBuild programs receiving assistance under ” for “participants in YouthBuild programs receiving assistance under ”.

Pub. L. 113–128, § 512(p)(2)(A)section 3226 of title 29section 2918a of title 29Subsec. (d)(1)(B)(iii). , substituted “To YouthBuild programs receiving assistance under ” for “To YouthBuild programs receiving assistance under ”.

Pub. L. 113–128, § 512(p)(2)(B)section 3226 of title 29section 2918a of title 29Subsec. (d)(2)(B). , substituted “to YouthBuild programs receiving assistance under ” for “to YouthBuild programs receiving assistance under ”.

Pub. L. 109–281section 2918a of title 292006—Subsecs. (c)(1)(B)(iii), (2)(B), (d)(1)(B)(iii), (2)(B). substituted “YouthBuild programs receiving assistance under ” for “Youthbuild programs receiving assistance under subtitle D of title IV of the Cranston-Gonzalez National Affordable Housing Act”.

Pub. L. 102–5501992— amended section generally. Prior to amendment, section read as follows: “In the administration by the Secretary of Housing and Urban Development of programs providing direct financial assistance, including community development block grants under title I of the Housing and Community Development Act of 1974, in aid of housing, urban planning, development, redevelopment, or renewal, public or community facilities, and new community development, the Secretary shall—

“(1) require, in consultation with the Secretary of Labor, that to the greatest extent feasible opportunities for training and employment arising in connection with the planning and carrying out of any project assisted under any such program be given to lower income persons residing within the unit of local government or the metropolitan area (or non­metropolitan county), as determined by the Secretary, in which the project is located; and

“(2) require, in consultation with the Administrator of the Small Business Administration, that to the greatest extent feasible contracts for work to be performed in connection with any such project be awarded to business concerns, including but not limited to individuals or firms doing business in the field of planning, consulting, design, architecture, building construction, rehabilitation, maintenance or repair, which are located in or owned in substantial part by persons residing in the same metropolitan area (or nonmetropolitan county) as the project.”

Pub. L. 96–399, § 329(1)1980—Par. (1). , substituted “residing within the unit of local government or the metropolitan area (or nonmetropolitan county), as determined by the Secretary, in which the project is located” for “residing in the area of such project”.

Pub. L. 96–399, § 329(2)Par. (2). , substituted “residing in the same metropolitan area (or nonmetropolitan county) as the project” for “residing in the area of such project”.

Pub. L. 93–3831974— inserted reference to community development block grants under title I of the Housing and Community Development Act of 1974.

Pub. L. 91–152l1969— substituted provisions making applicable programs providing direct financial assistance in aid of housing, urban planning, development, redevelopment, or renewal, public or community facilities, and new community development, for provisions making applicable programs authorized by sections 1715(d)(3), 1715z, and 1715z–1 of this title, the low-rent public housing program under the United States Housing Act of 1937, and the rent supplement program under section 101 of the Housing and Urban Development Act of 1965.

Statutory Notes and Related Subsidiaries

Effective Date of 2014 Amendment

Pub. L. 113–128section 506 of Pub. L. 113–128section 3101 of Title 29Amendment by effective on the first day of the first full program year after (), see , set out as an Effective Date note under , Labor.

Effective Date of 2006 Amendment

Pub. L. 109–281, § 2(f)120 Stat. 1182

section 2918a of Title 29section 4183 of Title 25section 2939 of Title 29section 12870 of Title 42“This section [enacting former , Labor, amending this section, , Indians, former , and , The Public Health and Welfare, and repealing sections 12899 to 12899i of Title 42] and the amendments made by this section take effect on the earlier of—
“(1)
the date of enactment of this Act []; and
“(2)
.”
, , , provided that:

Effectiveness Study

Pub. L. 102–550, title IX, § 916106 Stat. 3881, , , provided that the Secretary of Housing and Urban Development should submit to Congress no later than 1 year after , a report describing efforts to enforce this section and the costs and barriers to full implementation of this section, coupled with legislative recommendations.