Governor Tim Walz signed Executive Order 20-20 establishing a shelter-in-place mandate for all non-essential businesses and persons. The order is effective Friday, March 27 through Friday, April 10. The order requires that all non-essential business and operations must cease.
Update: DEED has clarified its official list, and has explicitly stated residential construction is allowed to continue. Full list.
Many Housing First Minnesota companies have been declared as critical sector work and will be allowed to operate during this period, subject to the rules below. Earlier this week, Wisconsin declared residential construction essential as well.
Here is what you need to know:
Construction businesses in Minnesota have been declared as a “Critical Sector.“
Construction and critical trades. This category includes workers in the skilled trades such as electricians, plumbers, HVAC and elevator technicians, and other related constructions of all kind.
This category also includes exterminators, cleaning and janitorial staff for commercial and governmental properties, moving and relocation services, security staff, operating engineers, and all other service providers who provide services that are necessary to maintain the safety, sanitation, and essential operation of homes and residences and the Critical Sectors listed in this Executive Order.
Real Estate Transactions. This category is limited to workers who facilitate and finance real estate transactions and real estate services, including appraisers and title services.
The order requires several key requirements that all essential infrastructure businesses must read and incorporate:
- Minimum Basic Operations
- Essential Travel
- Social Distancing & Required Measures
In the hours following the declaration, there were conflicting reports on the status of residential construction. The Minnesota Department of Employment and Economic Development has clarified that residential construction is indeed covered as a critical service.
Housing First Minnesota sent the following email to its membership on the evening of March 25, 2020, to provide more clarity:
Dear Housing First Minnesota Members,
As we shared previously, Governor Tim Walz has signed an Executive Order establishing a shelter-in-place mandate for all non-critical sector businesses and persons. The order begins on Friday, March 27 through Friday, April 10. The order requires that all non-critical sector business and operations must cease. Most Housing First Minnesota companies have been declared as critical sector work and will be allowed to operate during this period.
We have sought housing industry legal analysis with regard to its impact on residential construction and services and conclude as follows:
Legal Analysis & Conclusion: The Executive Order provides a legal basis for continuation of residential construction and remodeling work premised on the role of the skilled trades and essential support services. The shelter order broadly defines categories of industry sectors and workers which are exempted from the broad scope of the order.
Order Language: For purposes of this Executive Order, homes or residences includes hotels, motels…and similar facilities to the extent they are used for lodging.
Analysis: We conclude this section provides a very broad basis for construing the Order with respect to all aspects of housing.
Order Language: Para f. Transportation and logistics:
i. State, county and local government agencies and agency workers, as well as private sector workers, who support or enable transportation functions … including workers that maintain and inspect infrastructure….
ii. Workers engaged in roadway construction, maintenance, and utility projects.
Analysis: We conclude this section of the order exempts workers involved in transportation projects related to residential construction and development.
Order Language: Para x. Construction and critical trades. This category includes workers in the skilled trades such as electricians, plumbers, HVAC and elevator technicians, and other related construction of all kind. This category also includes…moving and relocation services…and all other service providers who provide services that are necessary to maintain the safety, sanitation, and essential operation of homes and residences….
Analysis: We conclude this section is a broad endorsement of residential construction work by the skilled trades, which traditionally includes carpenters, masons, painters and the like. We conclude it also encompasses “all other” service providers who provide services “necessary to maintain the safety, sanitation, and essential operation” of residences; this last category has a necessary caveat which should not be ignored.
Order Language: U: Para hh. Real Estate Transactions. This category is limited to workers who facilitate and finance real estate transactions and real estate services, including appraisers and title services.
Analysis: We conclude this section is a broad endorsement of the workers associated with buying, selling and financing a home.
We will continue to work with the Governor’s Office and legislative leaders as we move forward in these unprecedented times.
Onward,
Gary Kraemer
President
Housing First Minnesota
David Siegel
Executive Director
Housing First Minnesota
Housing First Minnesota staff is working around the clock to keep you aware of the latest information about COVID-19. For the latest news and information, visit housingfirstmn.org, the Housing First Minnesota blog, or connect with us on Facebook and Twitter.
