New State Prevailing Wage Requirements
In the 2023 and 2024 legislative sessions, the state prevailing wage statutes (Minnesota Statute 116J.871) were amended to include new reporting requirements and to broaden prevailing wage applicability for multifamily rental housing projects that receive funding from Minnesota Housing. These changes help ensure compliance with state statutes and streamline reporting procedures.
The new state prevailing requirements apply to:
- New construction rental housing projects (projects that create new units of housing, including adaptive reuse) selected for funding after July 1, 2023, for $200,000 or more of grant funding or $500,000 or more of total loan funding; or,
- Any project awarded or allocated federal low income housing tax credits after January 1, 2025, with more than ten units.
While state prevailing wage requirements generally do not apply to rehabilitation projects (projects that do not create new units of housing), state prevailing wage may apply to rehabilitation projects that include public ownership entities. Public ownership entities include but are not limited to:
- Housing and redevelopment authorities
- Economic development authorities
- Public housing authorities
If a public ownership entity is involved in the project, please contact Minnesota Housing for additional information and requirements.
These changes do not affect projects selected for grants or loans before July 1, 2023, or projects already under construction.
Depending on the funding sources, a project may be subject to both state prevailing wage and federal prevailing wage, which is commonly known as Davis-Bacon.
Reporting Requirements
The reporting requirements outlined below only apply to loans, grants, and federal low income housing tax credits awarded directly by Minnesota Housing. Entities receiving financial assistance indirectly from Minnesota Housing through a city or county should contact the city or county awarding the financial assistance regarding Certified Payroll reporting requirements.
NEW: Certified Payroll Reports. In addition to the existing Prevailing Wage Certification Form submitted before closing, Minnesota Housing must now collect Certified Payroll Reports within the 14 days following each pay period end date. The Certified Payroll reports must be submitted electronically throughout the construction period.
DLI Reporting Requirements Remain. Submitting the Certified Payroll reports to Minnesota Housing does not replace your obligation to report to the Minnesota Department of Labor and Industry (DLI) or any other entity that may have payroll reporting. Please contact DLI at dli.prevwage@state.mn.us for details.
Frequently Asked Questions
A Frequently Asked Questions (FAQs) document providing further details on project applicability, timelines, and the electronic submission processes can be found on Minnesota Housing’s Prevailing Wage webpage.
How We Can Support You
Minnesota Housing is committed to supporting you through these changes. We are available if answers are not found on our Prevailing Wage webpage or FAQ document.
We appreciate your cooperation in adhering to these statutory changes.
About Minnesota Housing
Minnesota Housing, the state’s housing finance agency, works to provide access to safe, stable and accessible housing Minnesotans can afford in a community of their choice. In 2023, the Agency distributed $1.85 billion in resources and served 69,500 households. Visit our website to learn more.
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