Skip to Main Content

Vendor Guidelines

Labor Compliance

MHA's Labor Compliance effort ensures that construction laborers are paid prevailing wages​ as outlined in the Davis-Bacon Wage Rate Act, and associated​ HUD regulations. In order to assure compliance with the law, OHA undertakes a variety of actions including:

  • Construction site visits
  • Construction worker interviews
  • Review certified payroll records for accuracy
  • Resolve payment discrepancies

Purchase orders or contracts which require labor to be performed may require prevailing wages to be paid as set forth by the U.S. Department of Housing and Urban Development, Secretary of Labor. Prevailing wages are the minimum hourly wages that must be paid to employees working on MHA jobs. When applicable, this will be specified in the Instructions to Bidders and full wage information will be included in the specifications package.

It is the responsibility of the contractor to assure compliance with the applicable prevailing wage rates, and provide necessary reports.

What is Section 3?

Section 3 is a federally mandated program of the U.S. Department of Housing and Urban Development (HUD). Under Section 3 of the HUD Act of 1968, federal funding invested in housing and community development shall provide contracts, employment, training, and other economic opportunities to low- and very low-income people in the local jurisdiction and to businesses that provide such opportunities, also known as "Business Concerns."

Section 3 requires that "to the greatest extent feasible," businesses working on projects that receive certain financial assistance from HUD must make a good faith effort to train and hire low- and very low-income individuals, and contract with businesses that do so. The program is implemented and regulated by Part 135 of Title 24 of the Code of Federal Regulations (24 CFR 135).

  • Employment opportunities for MHA certified Section 3 Residents may include: professional, technical, construction, and administrative.
  • Contracting and/or subcontracting opportunities for MHA certified Section 3 Businesses include but are not limited to construction, professional services, and general services.
  • Mansfield Housing (MHA) complies with Section 3 within its own operations and ensures the compliance of its sub-recipients, developers, contractors, and subcontractors.

To learn more about Section 3, visit the HUD website.

Contract Compliance

Sub-recipients, developers, contractors and subcontractors on SDHC Section 3 covered contracts and projects must, to the greatest extent feasible, make a documented effort to achieve the HUD Section 3 numerical goals by awarding contracts to qualified Section 3 Business Concerns and employing qualified Section 3 Residents, if the need to award contracts and/or hire new employees occurs:

  • Employ Section 3 Residents as 30 percent of all new hires during a one-year period of the project (i.e., A construction contractor hires 10 new workers; 3 of the new workers should be Section 3 Residents).


  1. Award Section 3 Business Concerns at least 10 percent of the total contract dollar amount for construction or rehabilitation services; and
  2. Award Section 3 Business Concerns at least 3 percent of the total contract dollar amount for non-construction services.

For assistance in identifying certified Section 3 Residents and Section 3 Business Concerns, contact MHA.