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HUD Davis Bacon Related Acts

Federal labor standards requirements are made applicable in HUD program activity, primarily, because of language written into the legislation that authorizes the program(s). Legislation that contains language imposing Davis-Bacon wage and reporting requirements are referred to as Related Acts, as in the Davis-Bacon and Related Acts or DBRA. Public and Indian housing programs may also be subject to prevailing wage requirements applicable to maintenance laborers and mechanics.

The labor standards provisions contained in the HUD Davis-Bacon Related Acts effect whether and to what extent prevailing wage requirements are applicable. The following are the HUD Related Act labor standards provisions for major programs. For more information about how interprets and applies these provisions, please see Factors of Applicability.

Housing and Community Development Act of 1974 (HCDA), (CDBG, Section 108 Loan Guarantee, EDI/BEDI)

Statutory Provision, Section 110:

  1. All laborers and mechanics employed by contractors and subcontractors in the performance of construction work financed in whole or in part with assistance received under this title shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a-276a-5); Provided, That this section shall apply to the rehabilitation of residential property only if such property contains not less than 8 units. The Secretary of Labor shall have, with respect to such labor standards, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267) and section 2 of the Act of June 13, 1934, as mended (48 Stat. 948; 40 U.S.C. 276(c)).
     
  2. Subsection (a) shall not apply to any individual that-
    1. performs services for which the individual volunteered;
    2. (A) does not receive compensation for such services; or
      (B) is paid expenses, reasonable benefits, or a nominal fee for such services; and
    3. is not otherwise employed at any time in the construction work.

Factors of Applicability: HCDA

HOME Investment Partnerships Act (Title II of the Cranston-Gonzalez National Affordable Housing Act), (HOME)

Statutory Provision, Section 286:

Labor

  1. In General.-Any contract for the construction of affordable housing with 12 or more units assisted with funds made available under this subtitle shall contain a provision requiring that not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the Davis-Bacon Act (40 U.S.C. 276a-276a-5), shall be paid to all laborers and mechanics employed in the development of affordable housing involved, and participating jurisdictions shall require certification as to compliance with the provisions of this section prior to making any payment under such contract.
     
  2. Waiver.-Subsection (a) shall not apply if the individual receives no compensation or is paid expenses, reasonable benefits, or a nominal fee to perform the services for which the individual volunteered and such persons are not otherwise employed at any time in the construction work.

Factors of Applicability: HOME

U.S. Housing Act of 1937 (USHA), (Public Housing, Section 8 Housing)

Statutory Provision, Section 12:

  1. (a) Any contract for loans, contributions, sale, or lease pursuant to this Act shall contain a provision requiring that not less than the wages prevailing in the locality, as determined or adopted (subsequent to a determination under applicable State or local law) by the Secretary, shall be paid to all architects, technical engineers, draftsmen, and technicians employed in the development, and all maintenance laborers and mechanics employed in the operation, of the low-income housing project involved; and shall also contain a provision that not less than the wages prevailing in the locality, and predetermined by the Secretary of Labor pursuant to the Davis-Bacon Act (49 Stat. 1011), shall be paid to all laborers and mechanics employed in the development of the project involved (including a project with nine or more units assisted under section 8 of this Act, where the public housing agency or the Secretary and the builder or sponsor enter into an agreement for such use before construction or rehabilitation is commenced), and the Secretary shall require certification as to compliance with the provisions of this section prior to making any payment under such contract.
     
  2. Subsection (a) and the provisions relating to wages (pursuant to subsection (a)) in any contract for loan, annual contributions, sale, or lease pursuant to this Act, shall not apply to any individual that-
    1. performs services for which the individual volunteered;
    2.      (A) does not receive compensation for such services; or
           (B) is paid expenses, reasonable benefits, or a nominal fee for such services; and
    3. is not otherwise employed at any time in the construction work.

Factors of Applicability: USHA

Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA), (IHBG)

Statutory Provision, Section 104(b):

  1. In general. Any contract or agreement for assistance, sale, or lease pursuant to this Act shall contain a provision requiring that not less than the wages prevailing in the locality, as determined or adopted (subsequent to a determination under applicable State, tribal, or local law) by the Secretary, shall be paid to all architects, technical engineers, draftsmen, and technicians employed in the development, and all maintenance laborers and mechanics employed in the operation, of the affordable housing project involved; and shall also contain a provision that not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the Act of March 3, 1931 (commonly known as the Davis-Bacon Act;…); shall be paid to all laborers and mechanics employed in the development of the affordable housing involved, and the Secretary shall require certification as to compliance with the provisions of this paragraph before making any payment under such contract or agreement.
     
  2. Exceptions. Paragraph (1) and the provisions relating to wages (pursuant to paragraph (1)) in any contract or agreement for assistance, sale, or lease pursuant to this Act, shall not apply to any individual who receives no compensation or is paid expenses, reasonable benefits, or a nominal fee to perform the services for which the individual volunteered and who is not otherwise employed at any time in the construction work.
     
  3. Application of Tribal Laws. Paragraph (1) shall not apply to any contract or agreement for assistance, sale, or lease pursuant to this Act, if such contract or agreement is otherwise covered by one or more laws or regulations adopted by an Indian Tribe that requires the payment of not less than prevailing wages, as determined by the Indian Tribe.

Factors of Applicability: NAHASDA (Indian programs)

Housing Assistance for Native Hawaiians (Title VIII of the NAHASDA)

Statutory Provision, Section 805(b):

  1. In general. Any contract or agreement for assistance, sale, or lease pursuant to this title shall contain -
    1. a provision requiring that an amount not less than the wages prevailing in the locality, as determined or adopted (subsequent to a determination under applicable State or local law) by the Secretary, shall be paid to all architects, technical engineers, draftsmen, technicians employed in the development and all maintenance, and laborers and mechanics employed in the operation, of the affordable housing project involved (sic);1and
    2. a provision that an amount not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the Act commonly known as the “Davis-Bacon Act” (46 Stat. 1494; chapter 411; 40 U.S.C. 276a et seq.) shall be paid to all laborers and mechanics employed in the development of the affordable housing involved.

  2. Exceptions. Paragraph (1) and provisions relating to wages require under paragraph (1) in any contract or agreement for assistance, sale, or lease under this title, shall not apply to any individual who performs the services for which the individual volunteered and who is not otherwise employed at any time in the construction work and received no compensation or is paid expenses, reasonable benefits, or a nominal fee for those services.

Factors of Applicability: NAHASDA (Hawaiian Homelands)

1. This paragraph (A) is quoted directly from the language of the statute, as enacted. However, HUD interprets this language to carry the same meaning as that found at Section 104(b)(1).