On March 9, 2015, U.S. Department of Housing and Urban Development (HUD) published a new notice pertaining to the applicability of Davis-Bacon labor requirements to housing considered to be “existing” housing under the project-based voucher (PBV) program (the Notice). The notice supplements HUD’s June 25, 2014 final rule that amended the PBV regulations as well as December 23, 2014 guidance pertaining to enforcement and applicability of Davis-Bacon under the Rental Assistance Demonstration (RAD) program.
The notice clarifies that Davis-Bacon requirements apply to existing PBV units when the nature of any work to be performed either before the execution of the Housing Assistance Payment (HAP) contract or within 18 months after execution constitutes project “development.” The Notice also clarifies the applicability of Davis-Bacon requirements under the second component of the RAD.
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