Agenda - Council Work Session - 07/28/2026

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TRANSPARENCY First, the Project Owner should be required to disclose incidents of wage theft, human trafficking, misclassification fraud, child labor and workplace safety violations on all past projects. This would provide critically needed transparency to disincentivize the use of contractors with a track record of issues. Second, the project owner should maintain and make available, directly or via the General Contractor, a list of all contractors and subcontractors that have been or are expected to be employed, is currently employed, or is expected to be employed on a housing project. Many elected officials and members of the public are surprised to learn that project owners are not typically required to provide local officials, agency funders, or interested members of the public with lists of contractors and subcontractors that are employed on construction projects. This lack of transparency makes it easy for contractors to misclassify workers as third - and fourth -tier subcontractors, and difficult for workers to prove or sometimes even know who employed them - leaving the public and sometimes even the developer in the dark. A requirement to list contractors would help to prevent misclassification by making it easier to recognize the illegal use of independent contractors. RESPONSIBLE CONTRACTING Irresponsible contractors that cheat workers or engage in other serious misconduct should not be allowed to work on taxpayer - funded housing projects any more than they should be allowed to participate in public works construction projects. Minnesota's Responsible Contractor Act (RCA) establishes clear guidelines for determining contractor responsibility that could also be applied to taxpayer financed projects to minimize the risk of publicly -subsidized misconduct. PREFERENCE FOR HIGH -ROAD CONTRACTING MHFA uses a wide range of criteria to evaluate funding proposals, including applications for LIHTC funding. But these criteria do not currently include any metrics related to the past performance or present commitments to contracting practices designed to maximize the benefits of construction jobs and careers to low-income communities and residents, or to minimize the risk of wage theft and other forms of exploitation on subsidized projects. MHFA should consider incorporating metrics that recognize the value of family -supporting jobs, health and retirement benefits, registered apprenticeship career pathways, and worker protections resulting from collective bargaining and worker -driven social responsibility programs. 3.2 PREVENTION AT THE LOCAL LEVEL Municipalities also have a vital role to play in wage theft prevention on multi -family housing construction projects since local governments grant permits and zoning approvals for new development. Municipal leaders often adopt policies designed to prevent other types of criminal activity in their cities, and they should take wage theft just as seriously. Municipalities could require applicants for construction permits to disclose information on a developer's track record with respect to wage theft and other forms of misconduct, and they could also require transparent reporting on the contractors and subcontractors used during construction. Finally, cities should look for creative ways to increase their enforcement capacity. This is a critical need at the local level. Policy changes alone are insufficient alone without more robust investment in enforcement. One way to increase enforcement capacity is to expand cooperation with neighboring North Star Policy Action 19