04 NCAC 19S .1005           LABOR STANDARDS

(a)  Recipients must comply with the Davis‑Bacon Act (40 U.S.C. 276a‑276a‑5) and the Contract Work Hours and Safety Standards Act (42 CFR 327‑333) and with other Federal laws and regulations pertaining to labor standards and HUD Handbook 1344.1 (Federal Labor Standards in Housing and Community Development Programs), as applicable, for any contract for the construction (rehabilitation or new construction) of affordable housing with 12 or more units assisted with HOME funds.

(b)  A volunteer who receives no compensation or is paid expenses, reasonable benefits, or a nominal fee to perform volunteer services and who is not otherwise employed at any time in the construction work is exempt from the prevailing wage provision of the Davis‑Bacon Act.

(c)  Members of an eligible family who provide "sweat equity" labor in exchange for acquisition of a property for homeownership or provide such labor in lieu of, or as a supplement to, rent payments are exempt from the prevailing wage provisions of the Davis‑Bacon Act.

(d)  All contracts required to comply with Paragraph (a) of this Rule must contain labor standards provisions.

(e)  As required by 24 CFR 24, a recipient must require participants in lower tier covered transactions to include the certification that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation from the covered transaction in any proposal submitted in connection with the lower tier transactions.  A recipient may rely on the certification, unless it knows the certification is erroneous.

(f)  Recipients shall maintain records regarding compliance with the laws and regulations cited in this Rule in accordance with Rule .1109 of this Subchapter.


History Note:        Authority G.S. 143B‑10; 143B‑431; 24 C.F.R. Part 92;

Eff. November 2, 1992.