Section 3 Compliance Checklist for Owners 
Updated March 2024
As a Recipient of United States Department of Housing and Urban Development (HUD) assistance exceeding $200,000, you are required to comply with Section 3 of the Housing and Urban Development Act of 1968 (“Section 3”). Section 3 requires that you and all Contractors and Subcontractors associated with the Project take steps so that low- and very low-income individuals and Section 3 Business Concerns that provide economic opportunities to low- and very low-income individuals have an opportunity to benefit from the Project. 
Instructions: Return this completed and signed checklist to Minnesota Housing via the Multifamily Customer Portal for approval prior to releasing the Project bid package. Additionally, collect this checklist from the Contractor and submit to Minnesota Housing either prior to releasing the Project bid package if already selected or shortly after selecting them.
Project Name:      
Project (D) Number:      
Company Name:      
Below are requirements you must meet to help ensure that you comply with Section 3 and against which Minnesota Housing will evaluate your performance. Initial next to each item below acknowledging you understand and will comply with the following provisions.
1.	       Comply with Section 3 requirements in your operations and in the operations of your Contractors and Subcontractors.
2.	       Notify potential Contractors of the Section 3 requirements found in 24 CFR Part 75 by providing them with the Multifamily Section 3 Compliance Guide and all appendices before bidding. 
3.	       Review and include Minnesota Housing’s Section 3 Clause in all Contracts and bid packages. Contracts and bid packages must be submitted to Minnesota Housing via the Multifamily Customer Portal for approval prior to the execution of any Contracts or release of the Project bid package.
4.	       Require that all Contractors and Subcontractors provide you copies of subcontracts showing inclusion of Minnesota Housing’s Section 3 Clause, and retain these copies for later review by Minnesota Housing, HUD and/or its representatives in accordance with all recordkeeping requirements found in 24 CFR Part 75.31.
5.	       Take steps to meet or exceed the current HUD Section 3 benchmarks as defined below:
•	Section 3 Workers: 25% or more of the total number of labor hours worked by all workers on a Section 3 Project. 
•	Targeted Section 3 Workers: 5% or more of the total number of labor hours worked by all workers on a Section 3 Project.
6.	       Certify to follow the prioritization requirements found at 24 CFR Part 75.19. Implement procedures designed to notify Section 3 Workers about training and Employment Opportunities and Section 3 Business Concerns about contracting opportunities generated by Section 3 covered assistance. 
7.	       Document your efforts, and require that all Contractors and Subcontractors provide you documentation of their efforts to identify and provide training and employment opportunities to: 
a.	Section 3 Workers residing within the service area or neighborhood of the Project, and
b.	Participants in YouthBuild programs; 
8.	       Document your efforts, and require that all Contractors and Subcontractors provide you documentation of their efforts to identify and provide Contracts to2: 
a.	Section 3 Business Concerns that provide economic opportunities to Section 3 Workers in the Project service area or neighborhood, and 
b.	YouthBuild programs
9.	       Require that all Contractors and Subcontractors identify all eligible Section 3 Workers, Targeted Section 3 Workers and Section 3 Business Concerns and provide to you, via the Contractor, copies of all certification forms collected prior to beginning work onsite. Retain them for later review by Minnesota Housing, HUD and/or its representatives in accordance with all recordkeeping requirements found at 24 CFR Part 75.31. 
10.	       If new Subcontractors are hired after the start of construction, help ensure that they promptly identify all eligible Section 3 Workers, Targeted Section 3 Workers and Section 3 Business Concerns, and provide to you, via the Contractor, copies of all certification forms collected. 
11.	       Help ensure that all Contractors and Subcontractors identify all eligible Section 3 Workers and Targeted Section 3 Workers and enter their labor hours worked on a weekly basis in LCPtracker during Project construction. If labor hours are not required to be entered into LCPtracker, then labor hours must be documented using the Labor Hours Certification Form and submitted with the Project’s monthly draw request.
I certify that I have read and fully understand and acknowledge the obligation to strictly comply with the requirements set forth above.
     	     
Printed Name	Title
     	     
Signature	Date
Note: Capitalized terms are defined in Appendix A – Terms of the Multifamily Section 3 Compliance Guide. This guide and all Section 3 forms referenced above can be found on Minnesota Housing’s website.