First-in-Nation Law Will Require Contractors to Pay Workers Prevailing Wage for Subsidized Low-Income Housing Projects in Minnesota

A new Minnesota law expands prevailing wage coverage on publicly financed housing projects. Minnesota will be the first state in the nation to mandate prevailing wages on projects funded by Low-Income Housing Tax Credits (LIHTC). Currently paying a prevailing wage is not mandated for LIHTC projects and is usually only triggered if these projects are coupled with other funding streams that trigger prevailing wages. The law also increases contracting transparency, extends Minnesota’s responsible contractor law and holds developers accountable for wage-theft and other forms of worker mistreatment. This new law will ensure dignity and respect for workers building critically needed affordable housing.

The BlueGreen Alliance released the following statement from State Initiatives Manager Jeff Hurley about the new law:

“These tax credits are the nation’s largest program for the construction and preservation of affordable rental housing units, but until now the workers on these projects weren’t guaranteed fair wages and benefits. This first-in-nation law can serve as a guide for other states to require prevailing wages on LIHTC projects and offer protections for workers through high-road labor standards. Doing that will ensure that communities and workers share in the benefits of these public dollars.”