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![handle is hein.sag/sagor0036 and id is 1 raw text is: HARDY MYERS PETER D. SHEPHERD
Attorney General Deputy Attorney General
DEPARTMENT OF JUSTICE
GENERAL COUNSEL DIVISION
May 13, 2005
Jack Kenny, Deputy Director
Oregon Housing & Community Services
P.O. Box 14508
Salem, OR 97309-0409
Re: Opinion Request OP-2005-1
Dear Mr. Kenny:
You have requested our advice about the applicability of Oregon's prevailing wage law,
ORS 279C.800 to 279C.870, to the construction of low income, multi-unit housing that is
financed with Oregon Housing and Community Services (OHCS) loans pursuant to
ORS 456.550 to 456.725 and OAR chapter 813, division 10, and that receives tax credits
pursuant to OAR chapter 813, division 90. We understand that Risk Share loans, where the
U.S. Department of Housing & Urban Development assumes 50 percent of the risk of default,
are included in the division 10 loan program. Your questions and our answers are as follows:
1. Is it necessary that a construction project both constitute a public work and use
public funds in order for the prevailing wage law to apply? Yes.
2. Do the conditions imposed by OHCS on the construction of low income housing
financed pursuant to ORS 456.550 to 456.725 and OAR chapter 813, divisions 10 and 90, render
them public works? No.
Discussion
1. Requirements of the Prevailing Wage Law
The prevailing wage rate must be paid to workers on public works. ORS 279C.840(1).
[P]ublic works include, but are not limited to:
roads, highways, buildings, structures and improvements of all types, the
construction, reconstruction, major renovation or painting of which is carried on
or contracted for by any public agency to serve the public interest but does not
include the reconstruction or renovation of privately owned property which is
leased by a public agency. (Emphasis added.)
ORS 279C.800(5). A contract for a public work must require that the workers employed by the
contractor or subcontractor or other person doing [the work] or contracting to do the work under
the contract be paid at least the prevailing wage rate. ORS 279C.830(1).
1162 Court Street NE, Salem, OR 97301-4096 Telephone: (503) 947-4540 Fax: (503) 378-3784 TTY: (503) 378-5938](ViewImageLocal?handle=hein.sag/sagor0036&div=1&collection=&method=preview&ext=.png&size=3)