Federal labor standards known as the Davis-Bacon and Related Acts (DBRA), apply to HUD-funded projects based on criteria established for each HUD program. For the HOME Program, the DBRA apply to contracts for construction that cover 12 or more HOME-assisted units. For the 542(c) Risk Sharing Program, the DBRA apply 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.
When DBRA requirements are triggered for any HUD program, they apply not only to the HUD-assisted units but to all units on the project including market rate units. Contractors and subcontractors on DBRA-covered projects must pay the laborers and mechanics employed under the contract no less than the locally prevailing wages and fringe benefit -as determined by the U.S. Department of Labor. They must submit weekly certified payroll reports.
The Davis-Bacon Act requires locally prevailing wages to be paid to laborers and mechanics. The "Related Acts" are: 1) the Contract Work Hours and Safety Standards Act (CWHSSA), which requires time-and-a-half pay for overtime hours (over 40 in any workweek) worked on a covered project; 2) the Copeland Act, which makes it a crime to require employees to kickback any part of their wages; and 3) the Fair Labor Standards Act (FLSA), which contains federal minimum-wage rates, overtime and child labor requirements.
Developers, owners, and/or general contractors on DBRA-covered projects should utilize the fact sheet and manual below. Contact MFA's Labor Standards Officer, listed in the tab below, early in the development process in order to ensure compliance.
