HUD 52531B Section 8 Project-Based Voucher Program: PBV Agreement t

OMB Approval No. 2577-0169
(exp. 09/30/2017)

U.S. Department of Housing and Urban Development
Office of Public and Indian Housing
SECTION 8 PROJECT-BASED VOUCHER PROGRAM
PBV AGREEMENT TO ENTER INTO
HOUSING ASSISTANCE PAYMENTS CONTRACT
NEW CONSTRUCTION OR REHABILITATION
PART II
This agency may not conduct or sponsor, and a person is not required to respond to, a collection of information
unless that collection displays a valid OMB control number. Assurances of confidentiality are not provided under
this collection.

2.1 Training, Employment and Contracting Opportunities
(a) The project assisted under this Agreement is subject to the requirements of section
3 of the Housing Urban Development Act of 1968, as amended, 12 U.S.C. 1701u.
The owner shall carry out the provisions of section 3 and the regulations issued by
HUD as set forth in 24 CFR part 135 and all applicable rules and orders of HUD
issued thereunder prior to the execution of this Agreement. This shall be a
condition of the Federal financial assistance provided to the project, binding upon
the owner, the owner’s contractors and subcontractors, successors and assigns.
Failure to fulfill these requirements shall subject the owner, the owner’s
contractors and subcontractors, successors and assigns to the sanctions specified
by this Agreement, and to such sanctions as are specified by 24 CFR part 135.
(b) The owner shall incorporate or cause to be incorporated into any contract or
subcontract for work pursuant to this Agreement in excess of $100,000 the
following clause:
(1) The work to be performed under this contract is subject to the requirements of
section 3 of the Housing Urban Development Act of 1968, as amended, 12 U.S.C.
1701u. The purpose of section 3 is to ensure that employment and other
economic opportunities generated by HUD assistance or HUD-assisted projects
covered by section 3 shall, to the greatest extent feasible, be directed to low- and
very low-income persons, particularly persons who are recipients of HUD
assistance for housing.
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(2) The parties to this Agreement agree to comply with HUD’s regulations in 24 CFR
part 135, which implement section 3. As evidenced by their execution of this
Agreement, the parties to this Agreement certify that they are under no
contractual or other impediment that would prevent them from complying with
the part 135 regulations.
(3) The contractor agrees to send to each labor organization or representative of
workers with which the contractor has a collective bargaining agreement or other
understanding, if any, a notice advising the labor organization or workers’
representative of the contractor’s commitments under this section 3 clause, and
will post copies of the notice in conspicuous places at the work site where both
employees and applicants for training and employment positions can see the
notice. The notice shall describe the section 3 preference, and shall set forth
minimum number and job titles subject to hire, availability of apprenticeship and
training positions, the qualifications for each; the name and location of the
person(s) taking applications for each of the positions; and the anticipated date the
work shall begin.
(4) The contractor agrees to include this section 3 clause in every subcontract subject
to compliance with regulations in 24 CFR part 135, and agrees to take appropriate
action, as provided in an applicable provision of the subcontract or in this section
3 clause, upon a finding that the subcontractor is in violation of the regulations in
24 CFR part 135. The contractor will not subcontract with any subcontractor
where the contractor has notice or knowledge that the subcontractor has been
found in violation of the regulations in 24 CFR part 135.
(5) The contractor will certify that any vacant employment positions, including
training positions, that are filled (1) after the contractor is selected but before the
contract is executed, and (2) with persons other than those to whom the
regulations of 24 CFR part 135 require employment opportunities to be directed,
were not filled to circumvent the contractor’s obligations under 24 CFR part 135.
(6) Noncompliance with HUD’s regulations in 24 CFR part 135 may result in

sanctions, termination of this Agreement for default, and debarment or suspension
from future HUD assisted contracts.
(7) With respect to work performed in connection with section 3 covered Indian
housing assistance, section 7(b) of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 405e) also applies to the work to be performed under
this contract. Section 7(b) requires that to the greatest extent feasible:
(i) preference and opportunities for training and employment shall be given to
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Indians, and (ii) preference in the award of contracts and subcontracts shall be
given to Indian organizations and Indian-owned Economic Enterprise. Parties to
this contract that are subject to the provisions of section 3 and section 7(b) agree
to comply with section 3 to the maximum extent feasible, but not in derogation
of compliance with section 7(b).

2.2 EQUAL EMPLOYMENT OPPORTUNITY
(a) The owner shall incorporate or cause to be incorporated into any contract in
excess of $10,000 for construction work, or modification thereof, as defined in the
regulations of the Secretary of Labor at 41 CFR chapter 60, which is to be
performed pursuant to this Agreement, the following nondiscrimination clause:
During the performance of this contract, the contractor agrees as follows:
(1) The contractor will not discriminate against any employee or applicant for
employment because of race, color, creed, religion, sex, or national origin. The
contractor will take affirmative action to ensure that applicants are employed, and
that employees are treated during employment, without regard to their race, color,
religion, creed, sex, or national origin. Such action shall include, but not be
limited to, the following: employment, upgrading, demotion, or transfer;
recruitment or recruitment advertising; layoffs or termination; rates of pay or
other forms of compensation; and selection for training, including apprenticeship.
The contractor agrees to post in conspicuous places, available to employees and
applicants for employment, notices to be provided by the contracting officer
setting forth the provisions of this nondiscrimination clause.
(2) The contractor will, in all solicitations or advertisements for employees placed by
or on behalf of the contractor, state that all qualified applicants will receive
consideration for employment without regard to race, color, religion, creed, sex,
or national origin.
(3) The contractor will send to each labor union or representative of workers with
which the contractor has a collective bargaining agreement or other contract or
understanding, a notice to be provided by or at the direction of the Government
advising the labor union or workers representative of the contractor’s
commitments under this section, and shall post copies of the notice in
conspicuous places available to employees and applicants for employment.

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(4) The contractor of will comply with all provisions of Executive Order No. 11246
of September 24, 1965, and with the rules, regulations, and relevant orders of the
Secretary of Labor.
(5) The contractor will furnish all information and reports required by Executive
Order No. 11246 of September 24, 1965, and by the rules, regulations, and orders
of the Secretary of Labor, or pursuant thereto, and will permit access to its books,
records, and accounts by HUD and the Secretary of Labor for purposes of
investigation to ascertain compliance with such rules, regulations and orders.
(6) In the event of the contractor’s noncompliance with the nondiscrimination clauses
of this contract or with any of the rules, regulations, or orders, the contract may be
canceled, terminated, or suspended in whole or in part and the contractor may be
declared ineligible for further contracts in accordance with procedures authorized
in Executive Order No. 11246 of September 24, 1965, and such other sanctions as
may be imported and remedies invoked as provided in Executive Order No.
11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of
Labor or as otherwise provided by law.
(7) The contractor will include the provisions of paragraphs (1) through (7) in every
subcontract or purchase order unless exempted by the rules, regulations, or orders
of the Secretary of Labor issued pursuant to section 204 of Executive Order No.
11246 of September 24, 1965, so that such provisions will be binding upon each
subcontractor or vendor. The contractor will take such action with respect to any
subcontract or purchase order as the Government may direct as a means of
enforcing such provisions including sanctions for noncompliance; provided,
however, that in the event a contractor becomes involved in, or is threatened with,
litigation with a subcontractor or vendor as a result of such direction by the
Government, the contractor may request the United States to enter into such
litigation to protect the interest of the United States.
(b) The owner agrees to be bound by the above nondiscrimination clause with respect
to his or her own employment practices when participating in federally assisted
construction work.
(c) The owner agrees to assist and cooperate actively with HUD and the Secretary of
Labor in obtaining the compliance of contractors and subcontractors with the
nondiscrimination clause and the rules, regulations, and relevant orders of the
Secretary of Labor, to furnish HUD and the Secretary of Labor such information

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as they may require for the supervision of such compliance, and to otherwise
assist HUD in the discharge of HUD’s primary responsibility for securing
compliance.
(d) The owner further agrees to refrain from entering into any contract or contract
modification subject to Executive Order No. 11246 of September 24, 1965, with a
contractor debarred from, or who has not demonstrated eligibility for,
Government contracts and federally assisted construction contracts pursuant to the
Executive Order and will carry out such sanctions and penalties for violation of
the nondiscrimination clause as may be imposed upon contractors and
subcontractors by HUD or the Secretary of Labor pursuant to the Executive
Order. In addition, if the owner fails or refuses to comply with these undertakings,
HUD may take any or all of the following actions; cancel, terminate, or suspend
in whole or in part this Agreement; refrain from extending any further assistance
to the owner under the program with respect to which the failure or refusal
occurred until satisfactory assurance of future compliance has been received from
the owner, and refer the case to the Department of Justice for appropriate legal
proceedings.

2.3 RESERVED
2.4 HUD-FEDERAL LABOR STANDARDS PROVISIONS
The owner is responsible for inserting the entire text of section 2.4 of this Agreement in
all construction contracts and, if the owner performs any rehabilitation work on the
project, the owner must comply with all provisions of section 2.4. (Note: Sections 2.4(b)
and (c) apply only when the amount of the prime contract exceeds $100,000.)
(a)(1)(i) Minimum Wages. All laborers and mechanics employed or working upon the
site of the work (or under the United States Housing Act of 1937 or under the Housing
Act of 1949 in the construction or development of the project) will be paid
unconditionally and not less often than once a week, and without subsequent deduction or
rebate on any account (except such payroll deductions as are permitted by regulations
issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full
amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time
of payment computed at rates not less than those contained in the wage determination of
the Secretary of Labor which is attached hereto and made part hereof regardless of any
contractual relationship which may be alleged to exist between the contractor and such
laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide
fringe benefits under section l(b)(2) of the Davis-Bacon Act on behalf of laborers or

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mechanics are considered wages paid to such laborers or mechanics, subject to the
provisions of 29 CFR 5.5(a)(1)(iv); also, regular contributions made or costs incurred for
more than a weekly period (but not less often than quarterly) under plans, funds, or
programs, which cover the particular weekly period, are deemed to be constructively
made or incurred during such weekly period.
Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits
on the wage determination for the classification of work actually performed, without
regard to skill, except as provided in 29 CFR 5.5(a)(4). Laborers or mechanics
performing work in more than one classification may be compensated at the rate
specified for each classification for the time actually worked therein: Provided, That the
employer’s payroll records accurately set forth the time spent in each classification in
which work is performed. The wage determination (including any additional
classification and wage rates conformed under 29 CFR 5.5(a)(1)(ii) and the Davis-Bacon
poster (WH-1321)) shall be posted at all times by the contractor and its subcontractors at
the site of the work in a prominent and accessible place where it can be easily seen by the
workers.
(ii)(A) Any class of laborers or mechanics which is not listed in the wage determination
and which is to be employed under the contract shall be classified in conformance with
the wage determination. HUD shall approve an additional classification and wage rate
and fringe benefits therefore only when the following criteria have been met:
(1) The work to be performed by the classification requested is not performed by a
classification in the wage determination;
(2) The classification is utilized in the area by the construction industry; and
(3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable
relationship to the wage rates contained in the wage determination.
(B) If the contractor and the laborers and mechanics to be employed in the classification
(if known), or their representatives, and HUD or its designee agree on the classification
and wage rate (including the amount designated for fringe benefits where appropriate), a
report of the action taken shall be sent by HUD or its designee to the Administrator of the
Wage and Hour Division, Employment Standards Administration, U.S. Department of
Labor, Washington, D. C. 20210. The Administrator, or an authorized representative, will
approve, modify, or disapprove every additional classification action within 30 days of
receipt and so advise HUD or its designee or will notify HUD or its designee within the
30-day period that additional time is necessary.

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(C) In the event the contractor, the laborers or mechanics to be employed in the
classification or their representatives, and HUD or its designee do not agree on the
proposed classification and wage rate (including the amount designated for fringe
benefits, where appropriate), HUD or its designee shall refer the questions, including the
views of all interested parties and the recommendation of HUD or its designee, to the
Administrator for determination. The Administrator, or an authorized representative, will
issue a determination within the 30 days of receipt and so advise HUD or its designee or
will notify HUD or its designee within 30-day period that additional time is necessary.
(D) The wage rate (including fringe benefits where appropriate) determined pursuant to
subparagraphs (1)(B) or (C) of this paragraph, shall be paid to all workers performing
work in the classification under this contract from the first day on which work is
performed in the classification.
(iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or
mechanics includes a fringe benefit which is not expressed as an hourly rate, the
contractor shall either pay the benefit as stated in the wage determinations or shall pay
another bona fide fringe benefit or an hourly cash equivalent thereof.
(iv) If the contractor does not make payments to a trustee or other third person, the
contractor may consider as part of the wages of any laborer or mechanic the amount of
any costs reasonably anticipated in providing bona fide fringe benefits under a plan or
program: Provided, That the Secretary of Labor has found, upon the written request of
the contractor, that the applicable standards of the Davis-Bacon Act have been met. The
Secretary of Labor may require the contractor to set aside in a separate account assets for
the meeting of obligations under the plan or program.
(2) Withholding. HUD or its designee shall upon its own action or upon written request
of an authorized representative of the Department of Labor withhold or cause to be
withheld from the contractors under this contract or any other Federal contract with the
same prime contractor, or any other Federally-assisted contract subject to Davis-Bacon
prevailing wage requirements, which is held by the same prime contractor so much of the
accrued payments or advances as may be considered necessary to pay laborers and
mechanics, including apprentices, trainees and helpers, employed by the contractor or any
subcontractor the full amount of wages required by the contract. In the event of failure to
pay any laborer or mechanic, including any apprentice, trainee or helper, employed or
working on the site of the work (or under the United States Housing Act of 1937 or under
the Housing Act of 1949 in the construction or development of the project), all or part of
the wages required by the contract, HUD or its designee may, after written notice to the
contractor, sponsor, applicant, or owner, take such action as may be necessary to cause
the suspension of any further payment, advance, or guarantee of funds until such
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violations have ceased. HUD or its designee may, after written notice to the contractor,
disburse such amounts withheld for and on account of the contractor or subcontractor to
the respective employees to whom they are due.
(3)(i) Payrolls and Basic Records. Payrolls and basic records relating thereto shall be
maintained by the contractor during the course of the work and preserved for a period of
three years thereafter for all laborers and mechanics working at the site of the work (or
under the United States Housing Act of 1937, or under the Housing Act of 1949, in the
construction or development of the project). Such records shall contain the name,
address, and social security number of each such worker, his or her correct classification,
hourly rates of wages paid (including rates of contributions or costs anticipated for bona
fide fringe benefits or cash equivalents thereof of the types described in section l(b)(2)(B)
of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made
and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5
(a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs
reasonably anticipated in providing benefits under a plan or program described in section
l(b)(2)(B) of the Davis-Bacon Act, the contractor shall maintain records which show that
the commitment to provide such benefits is enforceable, that the plan or program is
financially responsible, and that the plan or program has been communicated in writing to
the laborers or mechanics affected, and records which show the costs anticipated or the
actual cost incurred in providing such benefits. Contractors employing apprentices or
trainees under approved programs shall maintain written evidence of the registration of
apprenticeship programs and certification of trainee programs, the registration of the
apprentices and trainees, and the ratios and wage rates prescribed in the applicable
programs.
(ii)(A) The contractor shall submit weekly for each week in which any contract work is
performed a copy of all payrolls to HUD or its designee if the agency is a party to the
contract, but if the agency is not such a party, the contractor will submit the payrolls to
the applicant, sponsor, or owner, as the case may be, for transmission to HUD or its
designee. The payrolls submitted shall set out accurately and completely all of the
information required to be maintained under 29 CFR 5.5(a)(3)(i). This information may
be submitted in any form desired. Optional Form WH-347 is available for this purpose
and may be purchased from the Superintendent of Documents (Federal Stock Number
029-005-00014-1), U.S. Government Printing Office, Washington, DC 20402. The prime
contractor is responsible for the submission of copies of payrolls by all subcontractors.
(B) Each payroll submitted shall be accompanied by a “Statement of Compliance,”
signed by the contractor or subcontractor or his or her agent who pays or supervises the
payment of the persons employed under the contract and shall certify the following:

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(1) That the payroll for the payroll period contains the information required to be
maintained under 29 CFR 5.5 (a)(3)(i) and that such information is correct and complete;
(2) That each laborer or mechanic (including each helper, apprentice, and trainee)
employed on the contract during the payroll period has been paid the full weekly wages
earned, without rebate, either directly or indirectly, and that no deductions have been
made either directly or indirectly from the full wages earned, other than permissible
deductions as set forth in 29 CFR part 3;
(3) That each laborer or mechanic has been paid not less than the applicable wage rates
and fringe benefits or cash equivalents for the classification of work performed, as
specified in the applicable wage determination incorporated into the contract.
(C) The weekly submission of a properly executed certification set forth on the reverse
side of Optional Form WH-347 shall satisfy the requirement for submission of the
“Statement of Compliance” required by paragraph (a)(3)(ii)(B) of this section.
(D) The falsification of any of the above certifications may subject the contractor or
subcontractor to civil or criminal prosecution under section 1001 of Title 18 and section
231 of Title 31 of the United States Code.
(iii) The contractor or subcontractor shall make the records required under paragraph
(a)(3)(i) of this section available for inspection, copying, or transcription by authorized
representatives of HUD or its designee or the Department of Labor, and shall permit such
representatives to interview employees during working hours on the job. If the contractor
or subcontractor fails to submit the required records or to make them available, HUD or
its designee may, after written notice to the contractor, sponsor, applicant, or owner, take
such action as may be necessary to cause the suspension of any further payment, advance,
or guarantee of funds. Furthermore, failure to submit the required records upon request or
to make such records available may be grounds for debarment action pursuant to 29 CFR
5.12.
(4)(i) Apprentices and Trainees. Apprentices. Apprentices will be permitted to work at
less than the predetermined rate for the work they performed when they are employed
pursuant to and individually registered in a bona fide apprenticeship program registered
with the U.S. Department of Labor, Employment and Training Administration, Bureau of
Apprenticeship and Training, or with a State Apprenticeship Agency recognized by the
Bureau, or if a person is employed in his or her first 90 days of probationary employment
as an apprentice in such an apprenticeship program, who is not individually registered in
the program, but who has been certified by the Bureau of Apprenticeship and Training or
a State Apprenticeship Agency (where appropriate) to be eligible for probationary
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employment as an apprentice. The allowable ratio of apprentices to journeymen on the
job site in any craft classification shall not be greater than the ratio permitted to the
contractor as to the entire work force under the registered program. Any worker listed on
a payroll at an apprentice wage rate, who is not registered or otherwise employed as
stated above, shall be paid not less than the applicable wage rate on the wage
determination for the classification of work actually performed. In addition, any
apprentice performing work on the job site in excess of the ratio permitted under the
registered program shall be paid not less than the applicable wage rate on the wage
determination for the work actually performed. Where a contractor is performing
construction on a project in a locality other than that in which its program is registered,
the ratios and wage rates (expressed in percentages of the journeymen’s hourly rate)
specified in the contractor’s or subcontractor’s registered program shall be observed.
Every apprentice must be paid at not less than the rate specified in the registered program
for the apprentice’s level of progress, expressed as a percentage of the journeymen hourly
rate specified in the applicable wage determination. Apprentices shall be paid fringe
benefits in accordance with the provisions of the apprenticeship program. If the
apprenticeship program does not specify fringe benefits, apprentices must be paid the full
amount of fringe benefits listed on the wage determination for the applicable
classification. If the Administrator determines that a different practice prevails for the
applicable apprentice classification, fringes shall be paid in accordance with that
determination. In the event the Bureau of Apprenticeship and Training, or a State
Apprenticeship Agency recognized by the Bureau, withdraws approval of an
apprenticeship program, the contractor will no longer be permitted to utilize apprentices
at less than the applicable predetermined rate for the work performed until an acceptable
program is approved.
(ii) Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work
at less than the predetermined rate for the work performed unless they are employed
pursuant to and individually registered in a program which has received prior approval,
evidenced by formal certification by the U.S. Department of Labor, Employment and
Training Administration. The ratio of trainees to journeymen on the job site shall not be
greater than permitted under the plan approved by the Employment and Training
Administration. Every trainee must be paid at not less than the rate specified in the
approved program for the trainee’s level of progress, expressed as a percentage of the
journeyman hourly rate specified in the applicable wage determination. Trainees shall be
paid fringe benefits in accordance with the provisions of the trainee program. If the
trainee program does not mention fringe benefits, trainees shall be paid the full amount of
fringe benefits listed on the wage determination unless the Administrator of the Wage
and Hour Division determines that there is an apprenticeship program associated with the
corresponding journeyman wage rate on the wage determination which provides for less
than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee
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rate who is not registered and participating in a training plan approved by the
Employment and Training Administration shall be paid not less than the applicable wage
rate on the wage determination for the classification of work actually performed. In
addition, any trainee performing work on the job site in excess of the ratio permitted
under the registered program shall be paid not less than the applicable wage rate on the
wage determination for the work actually performed. In the event the Employment and
Training Administration withdraws approval of a program, the contractor will no longer
be permitted to utilize trainees at less than the applicable predetermined rate for the work
performed until an acceptable program is approved.
(iii) Equal Employment Opportunity. The utilization of apprentices, trainees and
journeymen under this part shall be in conformity with the equal employment opportunity
requirements of Executive Order 11246, as amended, and 29 CFR part 30.
(5) Compliance with Copeland Act Requirements. The contractor shall comply with the
requirements of 29 CFR part 3 which are incorporated by reference in this Agreement.
(6) Subcontracts. The contractor or subcontractor will insert in any subcontracts the
clauses contained in section 2.4(a)(1) through (11) and such other clauses as HUD or its
designee may by appropriate instructions require, and also a clause requiring the
subcontractors to include these clauses in any lower tier subcontracts. The prime
contractor shall be responsible for the compliance by any subcontractor or lower tier
subcontractor with all the contract clauses in this section 2.4(a).
(7) Contract Terminations; Debarment. A breach of the contract clauses in 29 CFR 5.5
may be grounds for termination of the contract, and for debarment as a contractor and a
subcontractor as provided in 29 CFR 5.12.
(8) Compliance with Davis-Bacon and Related Act Requirements. All rulings and
interpretations of the Davis-Bacon and related Acts contained in 29 CFR parts 1, 3, and 5
are herein incorporated by reference in this contract.
(9) Disputes Concerning Labor Standards. Disputes arising out of the labor standards
provisions of this contract shall not be subject to the general disputes clause of this
contract. Such disputes shall be resolved in accordance with the procedures of the
Department of Labor set forth in 29 CFR parts 5, 6, and 7. Disputes within the meaning
of this clause include disputes between the contractor (or any of its subcontractors) and
HUD or its designee, the U. S. Department of Labor, or the employees or their
representatives.

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(10)(i) Certification of Eligibility. By entering into this Agreement, the contractor
certifies that neither it (nor he or she) nor any person or firm who has an interest in the
contractor’s firm is a person or firm ineligible to be awarded Government contracts by
virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be awarded
HUD contracts or participate in HUD programs pursuant to 24 CFR part 24.
(ii) No part of this Agreement shall be subcontracted to any person or firm ineligible for
award of a Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29
CFR 5.12(a)(1) or to be awarded HUD contracts or participate in HUD programs
pursuant to 24 CFR part 24.
(iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18
U.S.C. 1001. Additionally, U.S. Criminal Code, section 1010, Title 18, U.S.C., “Federal
Housing Administration transactions, provides in part: “Whoever, for the purpose of
...influencing in any way the action of such Administration...makes, utters or publishes
any statement, knowing the same to be false... shall be fined not more than $5,000 or
imprisoned not more than two years, or both.”
11. Complaints, Proceedings, or Testimony by Employees. No laborer or mechanic to
whom the wage, salary, or other labor standards provisions of this Agreement are
applicable shall be discharged or in any other manner discriminated against by the
Contractor or any subcontractor because such employee has filed any complaint or
instituted or caused to be instituted any proceeding or has testified or is about to testify in
any proceeding under or relating to the labor standards applicable under this Agreement
to his employer.
(b) Contract Work Hours and Safety Standards Act. The provisions of this paragraph (b)
are applicable only where the amount of the prime contract exceeds $100,000. As used
in this paragraph, the terms “laborers” and “mechanics” include watchmen and guards.
(1) Overtime Requirements. No contractor or subcontractor contracting for any part of
the contract work which may require or involve the employment of laborers or mechanics
shall require or permit any such laborer or mechanic in any workweek in which he or she
is employed on such work to work in excess of forty hours in such workweek unless such
laborer or mechanic receives compensation at a rate not less than one and one-half times
the basic rate of pay for all hours worked in excess of forty hours in such workweek.
(2) Violation; Liability for Unpaid Wages; Liquidated Damages. In the event of any
violation of the clause set forth in subparagraph (1) of this paragraph, the contractor and
any subcontractor responsible therefore shall be liable for the unpaid wages. In addition,
such contractor and subcontractor shall be liable to the United States (in the case of work
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done under contract for the District of Columbia or a territory, to such District or to such
territory), for liquidated damages. Such liquidated damages shall be computed with
respect to each individual laborer or mechanic, including watchmen and guards,
employed in violation of the clause set forth in subparagraph (1) of this paragraph, in the
sum of $10 for each calendar day on which such individual was required or permitted to
work in excess of the standard workweek of forty hours without payment of the overtime
wages required by the clause set forth in subparagraph (1) of this paragraph.
(3) Withholding for Unpaid Wages and Liquidated Damages. HUD or its designee shall
upon its own action or upon written request of an authorized representative of the
Department of Labor withhold or cause to be withheld, from any monies payable on
account of work performed by the contractor or subcontractor under any such contract or
any other Federal contract with the same prime contractor, or any other Federally-assisted
contract subject to the Contract Work Hours and Safety Standards Act, which is held by
the same prime contractor such sums as may be determined to be necessary to satisfy any
liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as
provided in the clause set forth in subparagraph (2) of this paragraph.
(4) Subcontractors. The contractor or subcontractor shall insert in any subcontracts the
clauses set forth in subparagraph (1) through (4) of this paragraph and also a clause
requiring the subcontractors to include these clauses in any lower tier subcontracts. The
prime contractor shall be responsible for compliance by any subcontractor or lower tier
subcontractor with the clauses set forth in subparagraphs (1) through (4) of this
paragraph.
(c) Health and Safety. The provisions of this paragraph (c) are applicable only where the
amount of the prime contract exceeds $100,000.
(1) No laborer or mechanic shall be required to work in surroundings or under
working conditions which are unsanitary, hazardous or dangerous to his health
and safety as determined under construction safety and health standards
promulgated by the Secretary of Labor by regulation.
(2) The contractor shall comply with all regulations issue by the Secretary of Labor
pursuant to Title 29 part 1926 and failure to comply may result in imposition of
sanctions pursuant to the Contract Work Hours and Safety Standards Act, 40 USC
3701 et seq.
(3) The contractor shall include the provisions of this paragraph in every subcontract
so that such provisions will be binding on each subcontractor. The contractor shall
take such action with respect to any subcontract as the Secretary of Housing and
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Urban Development or the Secretary of Labor shall direct as a means of enforcing
such provisions.

2.5-2.7 RESERVED
2.8 WAGE AND CLAIMS ADJUSTMENTS
The owner shall be responsible for the correction of all violations under section 2.4,
including violations committed by other contractors. In cases where there is evidence of
underpayment of salaries or wages to any laborers or mechanics (including apprentices
and trainees) by the owner or other contractor or a failure by the owner or other
contractor to submit payrolls and related reports, the owner shall be required to place an
amount in escrow, as determined by HUD sufficient to pay persons employed on the
work covered by the Agreement the difference between the salaries or wages actually
paid such employees for the total number of hours worked and the full amount of wages
required under this Agreement, as well as an amount determined by HUD to be sufficient
to satisfy any liability of the owner or other contractor for liquidated damages pursuant to
section 2.4. The amounts withheld may be disbursed by HUD for and on account of the
owner or other contractor to the respective employees to whom they are due, and to the
Federal Government in satisfaction of liquidated damages under section 2.4.

2.9 RESERVED
2.10 EVIDENCE OF UNIT(S) COMPLETION; ESCROW
(a) The owner shall evidence the completion of the unit(s) by furnishing the PHA, in
addition to the requirements listed in Part I of this Agreement, a certification of
compliance with the provisions of sections 2.4 and 2.8 of this Agreement, and that to the
best of the owner’s knowledge and belief there are no claims of underpayment to laborers
or mechanics in alleged violation of these provisions of the Agreement. In the event there
are any such pending claims to the knowledge of the owner, the PHA, or HUD, the owner
will place a sufficient amount in escrow, as directed by the PHA or HUD, to assure such
payments.
(b) The escrows required under this section and section 2.8 of shall be paid to HUD, as
escrowee, or to an escrowee designated by HUD, and the conditions and manner of
releasing such escrows shall be designated and approved by HUD.

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2.11 FLOOD INSURANCE
If the project is located in an area that has been identified by the Federal Emergency
Management Agency as an area having special flood hazards and if the sale of flood
insurance has been made available under the National Flood Insurance Program, the
owner agrees that: (1) the project will be covered, during the life of the property, by flood
insurance in an amount at least equal to its development or project cost (less estimated
land cost) or to the limit of coverage made available with respect to the particular type of
property under the National Flood Insurance Act of 1968, whichever is less; and (2) that
it will advise any prospective purchaser or transferee of the property in writing of the
continuing statutory requirement to maintain such flood insurance during the life of the
property.

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Previous Editions are obsolete
Project-based Voucher Program