Clarence Castile started Dwayne’s Lawn and Snow Service over a decade ago. After making the business his full-time job, Clarence learned about the U.S. Housing and Urban Development’s (HUD) Section 3 vendor designation. Through this program, Clarence was able to receive a priority status and won his first MPHA contract in 2017. Six years later, Clarence’s business continues to grow, and he credits the Section 3 program for being the opportunity he needed to take the next step as a business owner.

“[Section 3] gives you the opportunity to bid on contracts you probably would have never even known about. Once you get in, you get to know [the employer] and if they like you, they’ll want you to come back [for future contracts],” said Clarence Castile, owner of Dwayne’s Lawn and Snow Service.

Section 3 is named after the relevant section of the Housing and Urban Development Act of 1968, requiring that economic opportunities generated from HUD funding be directed to low- and very low-income persons. Although there are multiply ways to qualify for Section 3, one is that the business owner makes under 80 percent of the Area Median Income (AMI).

Over a decade ago, Clarence earned his Section 3 designation because his business was small, and his income qualified. In the years since, his business has grown thanks to the contracts he had access to and was prioritized for as a Section 3 vendor. Specifically, Clarence has provided lawncare services at MPHA’s Glendale townhomes.

Once Clarence earned his initial contracts with MPHA, he built relationships with MPHA staff that continued long after his first contract. Clarence continued to win bids with MPHA and other organizations prioritizing Section 3 businesses. But as his business and income grew, he worried he’d lose his Section 3 designation and lose contracts.

Instead, Clarence found that the relationships he’d formed with the organizations, along with his dependability and hard work ethic, helped him continue winning bids.

“That’s what Section 3 does for you. It brings you in and helps you build your business. Once you get to a certain [income] level, you’re not a Section 3 vendor anymore but you still have those contracts,” said Clarence.

Despite graduating from the Section 3 program because of his business’ success, the relationships Clarence built in the program allowed him to continue growing his business and expanding his client base.

Clarence is proud of his journey, graduating out of his Section 3-qualifying income and increasing his business’ capital. He’s committed to sharing his success so other Section 3 business owners aren’t fearful of surpassing the income threshold of Section 3, worrying they may lose out on business contracts earned while under the program. Clarence’s story illustrates the power of Section 3 opportunities and shows that graduating out of supportive programs should be celebrated.

As the largest public housing provider in the state, MPHA routinely contracts with local construction companies to supplement the work of its own in-house team of skilled maintenance and trades persons. The agency is committed to bridging equity gaps and creating a more inclusive Minneapolis, and it works to ensure MPHA’s contracted construction work reflects that commitment by making it a priority to seek and expand local partnerships with Section 3 businesses. Thus far in 2023, more that 75 percent of labor hours have been paid to Section 3 workers.

In all its contracted work, MPHA seeks to exceed HUD’s requirements by directing as many opportunities as possible to businesses that are owned by, employ, or subcontract with qualified Section 3 workers.

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