Labor Standards

Federal Labor Standards known as Davis-Bacon and Related Acts (DBRA), apply to projects with 12 or more HUD assisted units under the HOME Investment Partnerships Program and 542(c) Risk Sharing Program. Once triggered, contractors for construction are required to pay laborers and mechanics employed under the contract no less than the locally prevailing wages and fringe benefits as determined by the U.S. Department of Labor. These requirements are not only applicable to the HUD assisted units but to all units including market rate units.

The “Related Acts” involve the Contract Work Hours and Safety Standards Act (CWHSSA) the Copeland Act, and the Fair Labor Standards Act (FLSA).

HOME Investment Partnerships Program

Assisted HOME units include construction and non-construction activities such as acquisition, professional services (architecture, engineering, etc.), and homebuyer assistance. Once triggered, DBRA is applicable to the entire project, including portions of the project not funded by HOME.

542(c) Risk Sharing Program

The DBRA applies only if all of the following conditions are met: a) advances for the project are insured under this part; b) the project involves new construction or substantial rehabilitation; and, c) the project will contain 12 or more dwelling units.

Developers, owners, and/or general contractors of DBRA-covered projects should utilize the fact sheet and manual below. Contact the Development Loan Manager early in the development process in order to ensure compliance.