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"You know they kept kind of saying 'Oh, you <br />know your check will come later, oh we'll pay <br />you,' but that was a lie. It didn't come on <br />time," Adalid Zavala said through translator <br />Ruth Schultz, with Centro de Trabajadores <br />Unidos en la Lucha. <br />• Ed Lunn was observed on the TIF <br />subsidized River Glen Apartments - <br />Village Capital Corporation (Rochester) <br />PUBLIC MONEY FUELING THE GROWTH OF <br />CONCERNING BUSINESS PRACTICES <br />Our research highlights a troubling lack of <br />oversight or accountability for recipients <br />of public funding with respect to labor <br />standards on affordable housing projects. <br />Dominium, Roers and MWF are three of <br />the largest private recipients of LIHTCs and <br />frequent recipients of TIF. All three have used <br />contractors that have a record of cheating <br />workers or face allegations of exploitation on <br />multifamily housing projects. <br />Since 2016, these three developers have <br />received at least $47 million to build <br />affordable housing projects across the Twin <br />Cities metropolitan area. The total includes <br />housing tax credits backed by Dakota County, <br />Washington County and Minnesota Housing <br />Finance Agency; TIF funding from the City of <br />Richfield and the City of St. Louis Park; and <br />gap funding from Dakota County. <br />Project developers have the power to select <br />the contractors they want to use on their <br />projects. <br />Public financing should not flow to <br />developers that consistently use <br />irresponsible contractors. Developers that <br />receive public funding should be held to the <br />highest standards. <br />BAD FOR WORKERS, BAD FOR TENANTS <br />Discussion of labor conditions in affordable <br />housing construction can pit workers against <br />tenants, but all too often, projects that are built <br />using exploitative practices end up being man- <br />aged in ways that exploits tenants. Dominium, <br />one of the largest developers of affordable <br />housing in the country, also manages more than <br />30,000 apartments in 22 states. In Minnesota, <br />Dominium managed one of the largest apart- <br />ment complexes in the state until it was sold in <br />2019. A MinnPost article about that sale found <br />that "residents for years have reported safety <br />issues, unfair treatment from management <br />and poor living conditions, including mold and <br />asbestos in the walls." 58 <br />58 "Why the Possible Sale of a Massive Brooklyn Park <br />Apartment Complex Matters," MinnPost, November 21, <br />2oi9. https://www.minnpost.com/metro/2or9/ir/one-of- <br />the-state s-largest-and-most-controversial-apartment-com- <br />plexes-is-expected-to-be-sold-why-it-matters/. <br />Last year, residents of senior -living apartments <br />complained about a 12.5% rent hike and sued <br />Dominium, alleging they were illegally charging <br />parking fees after using federal tax credits <br />to cover the cost of building the parking lot.39 <br />Other news reports have alleged "bed bugs, <br />a lack of heat and hot water and unsafe living <br />conditions" at Dominium managed proper- <br />ties.60We believe this is an area ripe for further <br />investigation. <br />59 "KARE a Investigates: Affordable Senior Apartment <br />Developer Accused of `Double -Dipping," Kare rr, 2022, <br />https: //www.karer.com/article/news/investigations/kare- <br />rrinvestigates-senior-apartment-developer-accused-dou- <br />ble-dipping/8 9-5 25 6 e3br-8io 6-44d2-8c6 e-f2ad8b7d6464. <br />6o "Unsafe Living Conditions Reported at Senior Living <br />Apartment Complex," KSDK, February 14, 2018, https:// <br />www.ksdk.com/article/news/local/unsafe-living-con- <br />ditions-re pporte d-at-senior-living-apartment-com- <br />plex/63-5¢899282 7. <br />North Star Policy Action 17 <br />