Procurement and HUD Section 3 Compliance (2020 Updates)

Duration: 60 minutes Speaker: Paul Flogstad

Available On-Demand


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HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business.

This program will provide answers to these important questions:

  • How does Section 3 differ from the Minority Business Enterprise/Women Business Enterprise programs?
  • How are “low income” and very low income determined?
  • What is a Section 3 covered project?
  • Who is considered a recipient of Section 3 funding?
  • What is Section 3 covered assistance?
  • What does “To the Greatest Extent Feasible” Mean?
  • What does the term Section 3 resident mean?
  • What does the term Section 3 Business Concern mean?
  • How does Section 3 differ from the Minority Business Enterprise/Women Business Enterprise programs?
  • How are low-income and very low-income determined?
  • What are metropolitan areas and non-metropolitan counties?
  • What is a new hire?
  • Can laid-off workers that are re-hired as a result of a HUD-funded project considered new hires?
  • What is a Section 3 covered project?
  • Who is considered a recipient of Section 3 funding?
  • Which recipient agencies (or sources of HUD financial assistance) are required to comply with Section 3?
  • What is Section 3 covered assistance?
  • Are maintenance projects covered by Section 3?
  • Does Section 3 apply to new hiring by a CDBG-Entitlement recipient?
  • Does Section 3 apply to new hiring by a Public Housing Authority?
  • Does Section 3 apply to other State/local laws?
  • What is the relationship between Section 3 and Davis Bacon requirements?
  • And more.

The goal of Section 3 is to ensure that HUD-funded projects maximize community benefits and economic opportunities for low-income persons and households.  In many respects, Employment Opportunities for Low-Income People (HUD Section 3) encourages funding recipients to document procedures and practices currently used or to better utilize those currently available, to maximize community benefits and economic opportunities for low-income persons and households. This seminar will explore all of the information and resources available to help you understand this program.

Who Will Benefit: 

  • Property Managers
  • Property Owners
  • Maintenance Staff
  • Tenant Association Members
  • Realtors
Paul Flogstad

Paul has been involved in the real estate industry for the past 38 years. He has been involved in sales, construction, project management, appraisal, property management and property management consulting/training.

Through his consulting company, Property Management Solutions, he provides training and consulting services nationwide to owners, management companies, multi-housing associations, as well as state and federal agencies.

He specializes in fair housing issues and has developed fair housing and outreach programs for governmental agencies as well as conducting seminars which are presented to property management companies, apartment associations and the general public nationwide. Most recently, he has been a consultant to the State of South Dakota. In this assignment he has developed a fair housing awareness program that is one of the first of its kind in the nation. It involves a three pronged approach to fair housing awareness. This approach makes use of an ombudsman concept and has proven to be very effective in dealing with discrimination and landlord/tenant issues.

For over twenty years he was involved in appraisal of residential, multi-family, farm and commercial properties throughout the Midwest. Most recently, he was a consultant for affordable, multi-housing properties in 22 different states. This involved properties in HUD, Rural Development, HOME and Tax Credit programs.

He holds numerous professional property management designations and currently holds the prestigious RHM designation from the National Center for Housing Management.

Paul was previously Vice President of the South Dakota Multi-Housing Association, Vice Chairman of the Minnehaha County Housing and Redevelopment Commission, and Chairman of the Sioux Falls Property Appeals Board. In 2009, he received the Outstanding Educator of the Year award from the South Dakota Multi-Housing Association.

Paul just authored a book which was released in January of 2015. It is titled: “Fair Housing: What Everyone Should Know”. This is a comprehensive book about the fair housing written with a property manager’s perspective and with real world examples. It is a great resource for anyone.

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Gwen is a very good teacher cause of all her years in the field.

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The speaker was very interactive and made it fun.



Learning the importance of REAC due to I am a new Property Manager this is very helpful.



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The speaker was extremely knowledgeable. Speaker moved the program forward at a good pace. The time flew by.



Gwen was fantastic and the material was very informative.

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