California Department of Industrial Relations Issued Two Rulings Related to Prevailing Wage Requirements
The California Department of Industrial Relations (DIR) this week issued two rulings related to prevailing wage requirements that are applicable to the construction of affordable housing. The first ruling denies an appeal of the DIR decision earlier this year that low-income housing tax credits (LIHTCs) and tax-exempt bonds do not trigger prevailing wage. In the second ruling, which involves a new case, DIR also concludes that LIHTCs and tax-exempt bonds do not trigger prevailing wage. The new ruling also determines that below market interest rate loans from a local agency do not trigger prevailing wage if at least 40 percent of the units are restricted for at least 20 years to tenants earning no more than 80 percent of the area median income.