§1437j. Labor protection; payment of wages prevailing in locality; certification of compliance; exceptions

(a) Any contract for loans, contributions, sale, or lease pursuant to this chapter 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, as predetermined by the Secretary of Labor pursuant to the Davis-Bacon Act [40 U.S.C. 276a et seq.], 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 1437f of this title, where the public housing agency or the Secretary and the builder or sponsor enter into 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.

(b) Subsection (a) of this section and the provisions relating to wages (pursuant to subsection (a) of this section) in any contract for loans, annual contributions, sale, or lease pursuant to this chapter, 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.

(Sept. 1, 1937, ch. 896, title I, §12, as added Aug. 22, 1974, Pub. L. 93–383, title II, §201(a), 88 Stat. 667 ; amended Aug. 13, 1981, Pub. L. 97–35, title III, §322(c), 95 Stat. 402 ; Feb. 5, 1988, Pub. L. 100–242, title I, §112(b)(5), 101 Stat. 1824 ; renumbered title I, June 29, 1988, Pub. L. 100–358, §5, 102 Stat. 681 ; Nov. 28, 1990, Pub. L. 101–625, title V, §572(2), title IX, §955(b), 104 Stat. 4236 , 4421.)

References in Text

The Davis-Bacon Act, referred to in subsec. (a), is act Mar. 3, 1931, ch. 411, 46 Stat. 1494 , as amended, which is classified generally to sections 276a to 276a–5 of Title 40, Public Buildings, Property, and Works. For complete classification of this Act to the Code, see Short Title note set out under section 276a of Title 40 and Tables.

Prior Provisions

A prior section 12 of act Sept. 1, 1937, ch. 896, 50 Stat. 894 , as amended, authorized the disposal of low-rent housing projects transferred to or acquired by the Authority and was classified to section 1412 of this title, prior to the general revision of this chapter by Pub. L. 93–383.

Amendments

1990-Pub. L. 101–625, §955(b), designated existing provisions as subsec. (a) and added subsec. (b).

Pub. L. 101–625, §572(2), substituted "low-income housing" for "lower income housing".

1988-Pub. L. 100–242 struck out "annual" before "contributions".

1981-Pub. L. 97–35 substituted reference to lower income for reference to low-income.

Effective Date of 1990 Amendment

Section 955(d) of Pub. L. 101–625 provided that: "The amendments made by this section [amending this section, section 5310 of this title, and section 1701q of Title 12, Banks and Banking] shall apply to any volunteer services provided before, on, or after the date of the enactment of this Act [Nov. 28, 1990], except that such amendments may not be construed to require the repayment of any wages paid before the date of the enactment of this Act for services provided before such date."

Effective Date of 1981 Amendment

Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see section 371 of Pub. L. 97–35, set out as an Effective Date note under section 3701 of Title 12, Banks and Banking.