From the Minneapolis Public Housing Authority's website:
As the largest public housing provider in the state and with a capital backlog of more than $229 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 2023, MPHA contracted with local firms more than 590,000 labor hours, nearly 165,000 of which is 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 2023, more than 40 percent of contracted labor hours were performed by qualified low-income workers and/or businesses (Section 3). Of the contracted construction project hours, more than 30 percent were done by minority-owned businesses (MBE) and over six percent went to woman-owned businesses (WBE).
“MPHA is committed to ensuring its investments make a lasting impact in our community,” said Abdi Warsame, Executive Director/CEO of the Minneapolis Public Housing Authority. “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. Our team works to partner with local businesses who are owned by and employ historically marginalized communities.”
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 might be 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.
JPMI Construction Co is a minority- and family-owned business that has worked with MPHA for decades. JPMI is currently working on some of the public housing buildings’ fire sprinkler installation and alarm system updates.
“All the residents are always very friendly. It’s a pleasure to work with them,” said Absaar Hadi, Project Manager of JPMI Construction Co. “It’s nice to know that MPHA has policies to ensure the smaller, minority-owned contractors don’t get overlooked.”
Iyawe and Associates is a qualified Section 3 business, and a minority-owned business, that has worked on MPHA contracts for over 15 years. Currently, they are updating unit doors in one of the agency’s public housing high-rises. For Iyawe and Associates, working with MPHA has allowed their business to grow.
“We have worked with MPHA for about 15 years now. Our project capacity has steadily increased because of the opportunities we have had with MPHA,” said Simon Iyawe, CEO of Iyawe and Associates. “We also appreciate how straight-forward the contracting process is.”
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’ economically disadvantaged communities are provided high-quality and well managed homes.