As the largest public housing provider in the state and with a capital backlog of more than $210 million, MPHA has a lot of construction and renovation work to complete. For the most complex projects, MPHA routinely contracts with local construction companies to supplement the work of its own in-house team of skilled maintenance and trades persons (ex. high-rise fire suppression system installations). In 2022, MPHA awarded local firms more than $50 million for this type of construction work, all of which pays prevailing wage rates.

Beyond helping more than 26,000 people access safe, stable, affordable housing every day, the agency is committed to helping build a more equitable Minneapolis through all its activities. Critically, this includes how the agency annually awards and spends on its contracted construction work.

In 2022, MPHA awarded more than $6 million of its construction projects to minority-owned businesses (MBE) and nearly $9 million to woman-owned businesses (WBE). Additionally, over 10 percent of construction labor hours went to qualified low-income workers/businesses (Section 3).

“As a government agency, we have an obligation to make sure our dollars go as far as possible to effect positive change in our community,” said Abdi Warsame, Executive Director/CEO of the Minneapolis Public Housing Authority. “Our procurement team works closely with our planning and development team to seek and expand partnerships with local business owners who represent historically marginalized communities. Whether its spending millions of dollars each year with minority- and woman-owned businesses, investing in new accessibility upgrades, or deploying climate-friendly green technologies, MPHA is committed to ensuring its investments make a lasting impact in our community.”

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 MBE, WBE, and Section 3 businesses.

While MBE and WBE are common nomenclature, Section 3 is a designation unique to HUD. Named after the relevant section of the Housing and Urban Development Act of 1968, Section 3 requires that economic opportunities generated from HUD funding be directed to low- and very low-income persons. 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.

Many of the local businesses MPHA contracts with are drawn to bidding on agency contracts because of the opportunity to serve their community, like Jamek Engineering Services, Inc., a minority-owned business.

“Working for MPHA enables us to achieve our objectives. MPHA’s aim to provide high-quality housing to a diverse low-income population is one that our organization fully supports,” said James Ekhator, President of Jamek Engineering Services, Inc. “It means a lot to us that we are highly regarded and valued by MPHA as a minority-owned business.”

Or Admiral Radon & Mechanical Services, a veteran- and woman-owned business who has an upcoming project with the agency.

“It is rewarding to help the community resolve issues within the home that can have an instant impact on comfort, efficiency, and safety,” said Chalone Pietrek, co-owner of Admiral Radon & Mechanical Services. “We are greatly appreciative for the opportunity, and we feel our skills and professionalism will be a great match going forward.”

Huot Construction & Services Inc. is a veteran-owned, qualified Section 3 business that has won numerous MPHA contracts, including repair and renovation work in both public housing high-rises and CHR scattered site homes. For Huot, working with MPHA is about the shared commitment to ensuring its work has a far-reaching positive impact in the community.

“At Huot, everybody has the same opportunity for success—in hiring and pay,” said Tony Huot, CEO of Huot Construction & Services Inc. “We are trying to be good stewards of the community by giving everybody an opportunity.”

Partnering with MBE, WBE, and Section 3 businesses is a positive for everyone involved. These businesses that face systematic barriers get prioritized for agency projects, MPHA gets high-quality construction work, and together, Minneapolis’ most vulnerable communities are provided high-quality and well managed homes.