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A multifamily developer that works closely with Prosper Portland to build affordable housing is facing criticism from a trade union after a subcontractor delayed paying workers on an apartment building project.

Prosper Portland nevertheless approved selling another property to the same developer. The agency鈥檚 board on March 13 green-lit the sale of a city-owned Southeast Portland parcel to Palindrome Communities, a local developer led by Chad Rennaker, after stinging public testimony from Western States Regional Council of Carpenters (WSRCC) workers.

鈥淚 have heard from workers that have gone six to seven weeks without pay,鈥� said Tino Juarez, a local carpenter.

Another carpenter, Michael Coughlin, added, 鈥淧alindrome Communities has past practices of hiring irresponsible general contractors and in turn hiring irresponsible subcontractors.鈥�

Construction workers are often exploited, Coughlin said.

鈥淚mmigrant labor abuse, tax fraud, wage theft, extortion are things that we fight every single day,鈥� he said.

Palindrome Communities鈥� construction arm, PacifiCap Construction Services, is the general contractor for the Southeast Portland project that elicited workers鈥� complaints. PacifiCap Construction Services shares Chad Rennaker, Jason Rennaker and Robert Gibson as executives.

Gibson, Palindrome Communities鈥� vice president of development, said he fired the subcontractor, JP Pro Framing Construction Inc., after learning of workers鈥� complaints that they had not been paid.

鈥淲e learned our lesson,鈥� Gibson told the Prosper Portland board. 鈥淚t wasn鈥檛 鈥� it鈥檚 not part of our practice. It was a mistake, and we鈥檒l do better to protect the workers of our subcontractors going forward in terms of whether they鈥檝e been paid.鈥�

JP Pro Framing Construction, based in Banks, was formed in 2020. Owner Juan Jimenez Gutierrez, reached April 17, said workers 鈥渉ave been paid.鈥� Gutierrez spoke in Spanish, while his wife, Sandra Martinez, translated for him.

鈥淚 have nothing to hide,鈥� he said.

The 红桃视频 was not able to verify that JP Pro Framing Construction workers had been paid. A WSRCC official did not respond to multiple requests for comment.

Martinez said that the company has been unfairly targeted.

鈥淎 lot of people want to drag JP Pro鈥檚 name through the mud,鈥� she said. 鈥淚t鈥檚 very tiring. It鈥檚 very upsetting. It鈥檚 a small business. We鈥檙e trying to keep it afloat.鈥�

The Oregon Bureau of Labor and Industries (BOLI) has fielded at least one complaint naming JP Pro Framing Construction. A worker, Lisa M. Exterovich of Portland, said she is owed $3,161 for a final paycheck and 80 hours of unused vacation pay. Exterovich had worked for JP Pro since March 2023.

A BOLI letter dated April 9 indicates JP Pro Framing Construction submitted a payment to BOLI, but Exterovich 鈥渞efused the partial payment鈥� and would pursue private action.

Gibson said the project the payment issue stems from is a 47-unit apartment building in Lents at 5802 S.E. 92nd Ave. It’s next to a property known as the Bakery Blocks that Palindrome Communities developed after purchasing the parcel from Prosper Portland in 2020. Both projects are part of Prosper Portland鈥檚 long-term goal to remake Lents, an outlying neighborhood bisected by Interstate 205 that has historically struggled to attract real estate development.

Gibson pledged that Palindrome Communities would increase its preconstruction due diligence of subcontractors. He said it can be difficult to find good contractors for projects that are too large for small contractors and not lucrative enough to attract bids from large ones.

鈥淭he project that we had a problem on was 47 (multifamily) units, so we don鈥檛 get the luxury of using larger contractors,鈥� Gibson said. 鈥淪o, we thought we picked the best one.鈥�

At the March meeting, Prosper Portland officials discussed ways to ensure subcontractors on projects the agency backs pay their workers appropriately. Prosper Portland has sets of policies dedicated to boosting diversity and preventing hate incidents, but little to make sure tradespeople 鈥� often people of color, immigrants and Spanish speakers鈥� are paid for their work.

Prosper Portland Executive Director Kimberly Branam said BOLI, which investigates wage and hour violations and issues fines, is best suited to keep subcontractors in line.

鈥淚t鈥檚 really important to be aware of when BOLI does issue fines, because they have such a thorough process, and those findings,鈥� she said.

Commissioner Serena Stoudamire Wesley said it was 鈥渧ery concerning鈥� to learn that workers hadn鈥檛 been paid.

Commissioners nevertheless approved the sale of a 33,071-square-foot parcel at to Palindrome Communities for $1.755 million. Palindrome expressed interest in building a mixed-use, mixed-income project with market-rate rental housing as well as commercial and hospitality space, according to Prosper Portland documents.

Editor’s note: This story has been updated to reflect that the Oregon Bureau of Labor and Industries responded to messages seeking comment.