Affordable Housing Blog
   
Subscribe:  
Share Print View
Rolling Back Davis-Bacon Wage Requirements?
HUD has eliminated the requirement to use Davis-Bacon wages in PBRA transactions in RAD Component II (Rent Supp / RAP and Mod Rehab conversions), according to HUD Notice H-2018-11 / PIH-2018-22, published in the Federal Register on December 11, 2018
Are more changes to come?  This change is limited to Rent Supp, RAP and Mod Rehab RAD conversions using PBRA, and does not extend to public housing conversions or PBV conversions.
 
Prior to this change, HUD had required all RAD Component II transactions, PBV and PBRA, to follow the March 9, 2015 Federal Register Notice requiring Davis-Bacon wages for all projects that constitute “development” within 18 months, prior or after, HAP contract execution.  That notice defines “development” as “work that … alters the nature or type of housing units in a PBV project, reconstruction, or a substantial improvement in the quality or kind of original equipment and materials,” but not “replacement of equipment and materials rendered unsatisfactory because of normal wear and tear by items of substantially the same kind.”  Many industry professionals believed this standard to be a substantial expansion from the previous standard, which only required Davis-Bacon wages if an AHAP was necessary because units needed work to meet HQS standards or new construction was contemplated. 
RAD participants are eagerly awaiting Revision 4 (Rev-4) of the RAD Notice, which will set forth the requirements for RAD for PRAC.  The recent notice does not mention RAD for PRAC, so participants will need to wait for Rev-4 to see if this limit on Davis-Bacon wages will apply in the RAD for PRAC context as well. 

Comments

There are no comments yet for this post.

Privacy Policy | Terms of Use and Conditions | Statement of Client Rights
This website contains attorney advertising. Prior results do not guarantee a similar outcome. © 2018 Nixon Peabody LLP
Categories
expand 1. HUD / RD

AFHS alerts
Elderly Housing -- Section 202
FHA Insurance and Risk Sharing
Preservation - HUD OAHP and Mark to Market
RAD
Section 8 Renewal Contracts
Utility Allowance
expand 2. Local & Regional

California and West Coast
DHCD (DC)
Housing Production Trust Fund
New York and Northeast
expand 3. Energy Tax Credits

expand 4. Historic Rehabilitation Tax Credits

Historic Rehabilitation Tax Credits
expand 5. Low-Income Housing Tax Credits

expand 6. New Markets Tax Credits

New Markets Tax Credits
expand 7. Real Estate

Tax
expand 8. Specialty

Freddie Mac
LGBT Housing
Sequestration
Tax-exempt Entities
expand 9. Video

Video