This bill aims to combat wage theft in Minnesota by establishing requirements for responsible contractors when the Minnesota Housing Finance Agency (MHFA) provides financial assistance for the development of multiunit residential housing. It amends Minnesota Statutes 2023 Supplement, section 116J.871, to include new definitions and provisions related to financial assistance, including the allocation of federal low-income housing credits. The bill mandates that applicants for financial assistance disclose any relevant legal issues related to wage theft and ensure that all contractors and subcontractors involved in the project meet the criteria of responsible contractors as defined in existing law.

Additionally, the bill introduces a wage theft prevention plan that recipients of financial assistance must implement if any contractor fails to pay required wages. It outlines the consequences for non-compliance, including disqualification from receiving further financial assistance for a specified period. The MHFA is granted the authority to deny applications or withhold previously approved financial assistance if applicants do not comply with these new requirements. The provisions of this bill will take effect for financial assistance provided after August 1, 2024, with certain exceptions for proposals initiated before that date.