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State Sen. Dick Anderson (R-Lincoln City) and Rep. Vikki Breese Iverson (R-Prineville) wrote to Oregon Labor Commissioner Christina Stephenson on April 8 following an Oregon Journalism Project story about the impact of Stephenson’s prevailing wage determinations on the development of affordable housing.
That story highlighted a project in Astoria called Copeland Commons. The nonprofit that owns it hopes to convert the century-old building that once served as cheap hotel into workforce housing. But Stephenson’s agency, the Oregon Bureau of Labor and Industries, determined developers must pay prevailing wage on the project, which could add substantially to the cost.
The story also noted that although affordable housing is supposed to be exempt from prevailing wage laws, BOLI has determined that if projects include commercial uses such as daycare or health clinics, those inclusions mean the entire project is subject to prevailing wage.
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In their letter, the lawmakers urged Stephenson to use her discretion to exempt more projects from paying prevailing wage, saying her agency’s actions were “potentially reducing the number of units built, delaying project timelines, or shutting down construction entirely.”
In an April 15 response, Stephenson said her agency has not changed its interpretation of prevailing wage laws, nor has the Oregon Court of Appeals, the final arbiter of BOLI decisions, ever overturned the agency’s rulings. She said she has less leeway than lawmakers may believe and must follow the letter of the law.
“Determinations on prevailing wage are not discretionary, BOLI has applied and will continue to apply the laws as they are written,” Stephenson wrote.
She also acknowledged the trade-off between paying prevailing—i.e., union—wages and maximizing the production of state-subsidized housing.
“Allocation of scarce taxpayer dollars is one of the Legislature’s most consequential roles,” Stephenson wrote. “I welcome the opportunity to engage in dialogue about how the Legislature might consider these important questions.”
This story was produced by the Oregon Journalism Project, a nonprofit investigative newsroom for the state of Oregon.