Section 3 Compliance Checklist for Subcontractors
Updated March 2024
This Project requires that all Contractors and Subcontractors who hire or award Contracts associated with the Project must take steps so that low- and very low-income individuals and Section 3 Business Concerns have an opportunity to benefit from the Project. 
Instructions: Return this completed and signed checklist to the Contractor (entity you are contracting with to perform work) with your bid application. Additionally, collect this completed and signed checklist from all Subcontractors bidding on the Project and retain them for later review by Minnesota Housing, the United States Department of Housing and Urban Development (HUD) and/or its representatives in accordance with all recordkeeping requirements found at 24 CFR Part 75.31.
Project Name:      
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 Subcontractors.
2.	       Notify potential Subcontractors of the Section 3 requirements found in 24 CFR Part 75 by providing the Multifamily Section 3 Compliance Guide and all appendices before bidding. 
3.	       Review and include Minnesota Housing’s Section 3 Clause in all subcontracts and bid packages. 
4.	       Provide the Contractor with copies of all subcontracts showing inclusion of Minnesota Housing’s Section 3 Clause. 
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 prioritization requirements found in 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.	       Provide the Contractor documentation of your 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.	       Provide the Contractor documentation of your 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.	       Identify all eligible Section 3 Workers, Targeted Section 3 Workers and Section 3 Business Concerns and provide copies of all certification forms collected to the Contractor prior to beginning work onsite. Require that all Subcontractors do the same and provide you with copies of all certification forms collected. These forms must then be submitted to the Contractor prior to beginning work onsite.
10.	       If new Subcontractors are hired after the start of construction, promptly request that they identify all eligible Section 3 Workers, Targeted Section 3 Workers and Section 3 Business Concerns and provide you with copies of all certification forms collected. You must then submit these forms to the Contractor prior to beginning work onsite3.
11.	       Identify all Section 3 Workers and Targeted Section 3 Workers and enter their labor hours worked on a weekly basis in LCPtracker during Project construction. Help ensure that your Subcontractors complete this as well. 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 monthly to the Contractor.
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.