Section 3 Contractor Compliance Checklist
Last Updated: April 2026
All Contractors and Subcontractors who hire or award Contracts associated with this Section 3 Project (Project) are required to comply with Section 3 of the Housing and Urban Development Act of 1968 and Code of Federal Regulations, title 24, part 75 (together, “Section 3”) and take steps so that Low- and Very Low-Income Persons and Section 3 Business Concerns have an opportunity to benefit from the Project.
Instructions: Return this completed and signed checklist to the Recipient prior to releasing the Project bid package or with your bid application. Additionally, collect this completed and signed checklist from all Subcontractors providing labor for the Project prior to executing any subcontracts. 
Retain copies of all Section 3 related documentation referenced below for later review by Minnesota Housing, the U.S. Department of Housing and Urban Development (HUD), and/or its representatives in accordance with all recordkeeping requirements outlined in 24 C.F.R. 75.31.
Capitalized terms are defined in Appendix B of the Multifamily Division Section 3 Compliance Guide. This guide and all Section 3 forms referenced can be found on Minnesota Housing’s HOME Investment Partnerships and National Housing Trust Fund webpage.
Section 3 Project Name:      
Company Name:      
Below are the 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 acknowledging you understand and will comply with the 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 C.F.R. 75 by providing the Multifamily Division 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 Recipient 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:
a.	Section 3 Workers: 25% or more of the total number of labor hours worked by all workers on a Section 3 Project.
b.	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 in 24 C.F.R. 75.19.
7.	      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.
8.	      Complete and submit the Section 3 Qualitative Efforts Reporting Form to the Recipient prior to Project Completion.
9.	      Require that Subcontractors complete and submit the Section 3 Qualitative Efforts Reporting Form to you. These forms must then be submitted to the Recipient prior to Project Completion2.
10.	      Identify all eligible Section 3 Workers, Targeted Section 3 Workers, and Section 3 Business Concerns and submit copies of all certification forms collected to Minnesota Housing prior to beginning work onsite.
11.	      Require that Subcontractors identify all eligible Section 3 Workers, Targeted Section 3 Workers, and Section 3 Business Concerns and submit copies of all certification forms collected to you. These forms must then be submitted to Minnesota Housing prior to beginning work onsite.
12.	      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 submit copies of all certification forms collected to you. These forms must then be submitted to Minnesota Housing prior to beginning work onsite3.
13.	      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. 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 Minnesota Housing.

I,       (Name), as the       (Title) of       (Company), hereby certify that I am authorized to sign on behalf of       (Company), have been supplied with a copy of and have read Minnesota Housing’s Multifamily Division Section 3 Compliance Guide, including all appendices, and fully understand and acknowledge, on behalf of       (Company), the obligation to strictly comply with the requirements set forth therein and above.
     	     
Authorized Signatory Printed Name	Title
     	     
Authorized Signature	Date