Prevailing Wage

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.

State prevailing wage requirements apply to the following Multifamily development projects in any of the following situations:

• New construction developments, including adaptive reuse, are subject to state prevailing wage requirements under Minnesota Statute 116J.871 if financed with any of the following from Minnesota Housing: loans of $500,000 or more; grants of $200,000 or more. The loan threshold applies to all Minnesota Housing Multifamily loans and grants regardless of the source of the funds, including federal appropriations and bond proceeds.
• If a project is publicly owned, state prevailing wage applies to new construction and rehabilitation projects where the estimated cost to complete the project exceeds $25,000 (Minn. Stat. 177.41 – 177.44). See section A, question 3, below, for additional details. 
• Any allocations or awards of federal low-income housing tax credits (LIHTC) from Minnesota Housing consisting of more than ten units.
  • An allocation is any amount of LIHTCs issued to a building which are taken into account in the state’s annual credit ceiling, pursuant to Section 42(h)(1)  
  • An award is any amount of LIHTCs issued to a building which are not taken into account in the state’s annual credit ceiling, pursuant to Section 42(h)(4)​

Changes do not affect projects selected for grants or loans before July 1, 2023, or projects already under construction.

​New Reporting Requirements - In addition to the existing Prevailing Wage Certification Form submitted before closing, Minnesota Housing must now collect.

​Certified Payroll Reports within 14 days after each pay period throughout construction. The Certified Payroll reports must be submitted electronically throughout the construction period.  

Frequently Asked Questions (FAQ) - provides further details on project applicability, timelines, and the electronic submission processes. 

Submitting reporting to Minnesota Housing does not replace your obligation to report to any other entity that may have reporting requirements. Please contact DLI at dli.prevwage@state.mn.us for details.

Minnesota Housing is committed to supporting you through these changes. We are available if answers are not found on our webpage or through our FAQ.

Frequently Asked Questions (FAQ) - Applies to Multifamily Division Projects. This FAQ is general guidance and is secondary to guidance provided by the by the Department of Labor and Industry. This is a living document with updates happening as needed. Please check back for new questions and updated guidance.

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.

• Questions about your grant/loan contact or certified payroll form submission - Contact Minnesota Housing at mhfa.prevailingwage@state.mn.us
  
  
• Questions regarding prevailing wage compliance and wage determination - Contact DLI at dli.prevwage@state.mn.us

We appreciate your cooperation in adhering to these statutory changes.

Prevailing Wage payroll reporting must be sent to mhfa.prevailingwage@state.mn.us through the Secure Upload Tool. Review the Secure Upload Tool Instructions for more information.

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.