MPHA strongly encourages the participation of HUD Section 3 certified businesses, as well as minority-owned and women-owned business enterprises.
HUD Section 3 Businesses and Regulations
Section 3 is part of the Housing and Urban Development Act of 1968 with the purpose of ensuring employment, training, contracting and other economic development opportunities for low income persons when federal dollars are expended. Federal law requires that “to the greatest extent feasible” at least 10% of the total dollar amount of all construction contracts and 3% non-construction contracts be awarded to certified Section 3 businesses.
A business can be Section 3 certified if it meets one of three criteria:
- It is owned 51 percent or more by a Section 3 qualified person living in the 13 county metro area;
- 30 percent or more of the permanent, full-time employees of the business are Section 3 eligible persons living in the 13 county metro area;
- The business can provide evidence of a commitment to subcontract at least 25% of its total contract award to a priority 1 or priority 2 Section 3 business.
Section 3 regulations are available online at the U.S. Government Printing Office website (search for “24 CFR 135”).
Note: If you subcontract to a Category 4C Section 3 business, this business must identify a Category 4A or Category 4B Section 3 business prior to submission of bid indicating that 25% or more of the total contract award will be given to the Category 4A or Category 4B Section 3 business for a particular contract. Any Category 4C Section 3 business who does not identify and contract with a Category 4A or Category 4B Section 3 business will lose its Section 3 status in addition to possibly losing future contracts with the MPHA.
Types of Contracting Opportunities
Painting, Excavating, General Contracting, Electrical, Plumbing, Cement/Masonry, Drywall, Demolition, Operating engineering, Bricklaying, Flooring, Landscaping, Mechanical.
Minority- and women-owned businesses
MPHA’s policy is to endeavor to award a fair share of contracts to small, woman-owned (WBE), and minority-owned (MBE) enterprises. Affirmative steps are taken to help ensure that such businesses are utilized, when possible, as sources of supplies, equipment, construction and other services by:
- Including qualified small, WBEs, and MBEs on solicitation lists;
- Ensuring that small, WBEs, and MBEs are solicited whenever they are potential sources;
- When feasible, dividing total requirements into smaller tasks or quantities in order to permit maximum participation by small, WBEs, and MBEs;
- Requiring the prime contractor to take the aforestated affirmative steps whenever subcontracts are to be let.
MPHA has established goals which are to be seriously pursued relative to all MPHA procurement activities. Those goals are:
- 7% WBE participation,
- 20% MBE participation, and
- 10% Section 3 participation
MPHA recognizes all official certifying entities within the State of Minnesota as appropriate to certifying an individual/business as a small, WBE, or MBE.
Supplier Diversity Seminars/Luncheons
Supplier Diversity Seminars are normally scheduled for the third Wednesday of each month. Topics of interest on building your business are presented by select speakers. Presentations on conducting business with MPHA are also featured. This is a great opportunity for networking. There is a nominal charge to cover speaker fees, lunch, and any handouts.
For further information on the MPHA Section 3 Program or how to certify your business as a Section 3 business or to obtain a certified Section 3 business listing, contact the Procurement Department at 612-342-1424.
*Section 3 resident is defined by HUD Regulation 24 CFR 135 – Priority order, 1st being a resident of public housing living in the building where work is being performed, 2nd a resident of public housing living in properties located in the City of Minneapolis, 3rd a HUD Youthbuild Participant, 4th a low income person living in the 13-County Twin Cities Metro Area whose income falls within the 80% median income guidelines for the area.