[Code of Federal Regulations]
[Title 24, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR92.354]

[Page 622]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
PART 92_HOME INVESTMENT PARTNERSHIPS PROGRAM--Table of Contents
 
                  Subpart H_Other Federal Requirements
 
Sec. 92.354  Labor.

    (a) General. (1) Every contract for the construction (rehabilitation 
or new construction) of housing that includes 12 or more units assisted 
with HOME funds must contain a provision requiring the payment of 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), to all laborers and mechanics employed in the development of any 
part of the housing. Such contracts must also be subject to the overtime 
provisions, as applicable, of the Contract Work Hours and Safety 
Standards Act (40 U.S.C. 327-332).
    (2) The contract for construction must contain these wage provisions 
if HOME funds are used for any project costs in Sec. 92.206, including 
construction or nonconstruction costs, of housing with 12 or more HOME-
assisted units. When HOME funds are only used to assist homebuyers to 
acquire single-family housing, and not for any other project costs, the 
wage provisions apply to the construction of the housing if there is a 
written agreement with the owner or developer of the housing that HOME 
funds will be used to assist homebuyers to buy the housing and the 
construction contract covers 12 or more housing units to be purchased 
with HOME assistance. The wage provisions apply to any construction 
contract that includes a total of 12 or more HOME-assisted units, 
whether one or more than one project is covered by the construction 
contract. Once they are determined to be applicable, the wage provisions 
must be contained in the construction contract so as to cover all 
laborers and mechanics employed in the development of the entire 
project, including portions other than the assisted units. Arranging 
multiple construction contracts within a single project for the purpose 
of avoiding the wage provisions is not permitted.
    (3) Participating jurisdictions, contractors, subcontractors, and 
other participants must comply with regulations issued under these acts 
and with other Federal laws and regulations pertaining to labor 
standards and HUD Handbook 1344.1 (Federal Labor Standards Compliance in 
Housing and Community Development Programs), as applicable. 
Participating jurisdictions must require certification as to compliance 
with the provisions of this section before making any payment under such 
contract.
    (b) Volunteers. The prevailing wage provisions of paragraph (a) of 
this section do not apply to an 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. See 24 CFR part 
70.
    (c) Sweat equity. The prevailing wage provisions of paragraph (a) of 
this section do not apply to members of an eligible family who provide 
labor in exchange for acquisition of a property for homeownership or 
provide labor in lieu of, or as a supplement to, rent payments.