As required by the Department of Housing and Urban Development (HUD) Act of 1968 (12 U.S.C. 1701u), there is a Section 3 component to each contract. The purpose of the Section 3 program is to provide employment, training, and contracting opportunities to low-income and low-skilled persons, particularly those individuals who are recipients of government assistance for housing. The purpose of Section 3 is to ensure that employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, and consistent with Federal, State, local laws, and regulations, be directed to low and very low-income persons, particularly those who are recipients of government housing assistance (public housing and Section 8) and to business concerns which provide economic opportunities to low and very low-income persons. The only exception to this requirement is supply only contracts that do not include any labor.
Solicitations for construction services will be bound by the Davis-Bacon Act (DBA). The DBA requires the payment of prevailing wage rates (which are determined by the U.S. Department of Labor) to all laborers and mechanics on all federally funded construction projects in excess of $2,000. A Davis-Bacon Wage Determination or HUD-52158 Routine Maintenance wage determination will be associated with it. All employees of the contractor, as well as any sub-contractors, shall be paid according to the Wage Determinations while working on an IHA project.
HUD Guidelines: Making Davis-Bacon Work
IHA has implemented an on-line process to submit documentation for various areas of contract compliance on all construction and renovation projects. IHA encourages on-line submittal of M/W/V/DOBE participation, Section 3 hires and/or contribution, workforce utilization and certified payrolls if applicable. The contract monitor assigned to the project will make each contractor aware of the date, time and location of training on this on-line submittal process. Information on the process will also be provided at pre-construction meetings where applicable.
All contractors and sub-contractors are required to submit their weekly certified payroll reports through the IHA electronic MyLCM.