![](media/image1.png){width="0.60625in" height="0.6472222222222223in"}

**U.S. Department of Housing and Urban Development**

# Office of Labor Relations

+-----------------------------------+----------------------------------+
| Special Attention of:             | **Notice** SL-2005-01            |
|                                   |                                  |
| Regional Directors, Field Office  | Issued: October 11, 2005         |
| Directors                         |                                  |
|                                   | Expires: October 11, 2006        |
| Regional and Field Labor          |                                  |
| Relations Staff                   | Cross References: Presidential   |
|                                   | Proclamation 7924; DOL All       |
| Regional and Field Directors,     | Agency Memorandum No. 199        |
| Offices of                        |                                  |
|                                   |                                  |
| Community Planning and            |                                  |
| Development,                      |                                  |
|                                   |                                  |
| Housing, and Public Housing       |                                  |
|                                   |                                  |
| Administrators, Offices of Native |                                  |
| American Programs                 |                                  |
|                                   |                                  |
| Regional and Field Counsels       |                                  |
|                                   |                                  |
| CPD Program Recipients            |                                  |
|                                   |                                  |
| Public and Indian Housing         |                                  |
| Agencies                          |                                  |
+-----------------------------------+----------------------------------+

Subject: Suspension of Davis-Bacon wage requirements for areas impacted
by Hurricane Katrina

The President signed a
[proclamation](http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-18238.pdf)
on September 8, 2005, suspending the Davis-Bacon Act, related provisions
of other statutes (Davis-Bacon Related Acts), and other directives
providing for the payment of Davis-Bacon wage rates in areas impacted by
Hurricane Katrina. The suspension is effective, until further notice,
for all contracts awarded on or after September 8, 2005, for work to be
performed in certain jurisdictions located within the states of Alabama,
Florida, Louisiana and Mississippi (see Attachment 1).

On September 22, the Department of Labor provided implementation
guidance with the issuance of [All Agency Memorandum No.
199](http://www.wdol.gov/aam/AAM199.pdf). The Department of Labor also
issued two fact sheets providing further [Guidance on the Suspension of
the Davis-Bacon and Related Acts in Areas Impacted by Hurricane
Katrina](http://www.wdol.gov/aam/DBRA_Guidance.pdf) and [Employment and
Wages under Federal Law during Natural Disasters &
Recovery.](http://www.wdol.gov/aam/Q_A_Wage_and_Hour.pdf) Links to these
documents, including the President's proclamation, may be found at
<http://www.wdol.gov/katrina.html>.

This suspension affects all HUD program activity in the named areas that
would otherwise be subject to Davis-Bacon wage requirements including,
but not limited to, public and Indian housing development; Community
Development Block Grant; HOME; FHA-insured multifamily housing; Section
202 and Section 811 supportive housing; and repair of HUD-owned
properties.

**Notes:**

1.  Davis-Bacon wage requirements remain in effect, as usual, for work
    undertaken in areas outside of the jurisdictions named in the
    proclamation.

2.  Davis-Bacon wage requirements remain in effect for all contracts
    entered into on or before September 7, 2005.

3.  HUD-determined maintenance wage rates applicable to the operation of
    public housing, and housing assisted under the Native American
    Housing Assistance and Self-Determination Act remain in effect in
    *all* areas.

4.  Special provisions relating to HUD programs. The suspension is
    effective in the jurisdictions named in the proclamation:

    a.  For projects assisted under the National Housing Act (e.g., FHA
        mortgage insurance), the suspension is effective where initial
        endorsement **and** start of construction occur on or after
        September 8, 2005.

    b.  For projects receiving Section 8 housing assistance payments,
        the suspension is effective where the execution of the Agreement
        to Enter Into Housing Assistance Payments Contract or comparable
        instrument **and** start of construction occur on or after
        September 8, 2005.

    c.  For construction work performed under the U. S. Housing Act of
        1937 or the Native American Housing Assistance and
        Self-Determination Act where there is no contract (e.g., public
        and Indian housing agencies using force account labor), the
        suspension is effective for construction work started on or
        after September 8, 2005.

5.  The overtime requirements of the Contract Work Hours and Safety
    Standards Act (CWHSSA) remain applicable. Thus, for prime contracts
    exceeding \$100,000 (except where the nature of Federal assistance
    is solely a loan guarantee or insurance, e.g., FHA mortgage
    insurance), all laborers and mechanics (including watchmen and
    guards), must be paid not less than one and one-half times their
    basic hourly rate of pay for all hours worked over 40 hours in a
    work week.

6.  The Anti-Kickback provisions of the Copeland Act as well as the
    regulations governing payroll deductions (29 CFR Part 3) continue to
    apply.

7.  The recordkeeping requirements of the Fair Labor Standards Act
    remain applicable to any employer covered by that Act.

8.  Certain labor standards provisions should be omitted from contracts
    affected by the suspension. The labor provisions that are still
    required, with appropriate modifications, are listed with respect to
    the HUD forms used most often (HUD-2554, HUD-4010, and HUD-5370) in
    Attachment 2. All other clauses within these contract forms remain
    in force, as written.

For more information about the effect of this proclamation in HUD
programs, please contact the [HUD Labor Relations
staff](http://www.hud.gov/offices/olr/laborrelstf.cfm) for your area.

*/s/*

Edward L. Johnson

Director

Office of Labor Relations

Attachments

1.  Counties and Parishes affected by the President's Proclamation
    suspending Davis-Bacon wage requirements

2.  Modifications to labor standards contract clauses for work affected
    by the suspension

### 

**Attachment 1 -- Notice SL-2005-01**

**Counties and Parishes affected by the President's Proclamation
suspending Davis-Bacon wage requirements:**

+-----------+----------------------------------------------------------+
| #         | Baldwin, Choctaw, Clarke, Mobile, Sumter, and Washington |
| # Alabama | Counties                                                 |
+-----------+----------------------------------------------------------+
| **        | Broward, Miami-Dade, and Monroe Counties                 |
| Florida** |                                                          |
+-----------+----------------------------------------------------------+
| **Lo      | Acadia, Allen, Ascension, Assumption, Avoyelles,         |
| uisiana** | Beauregard, Bienville, Bossier, Caddo, Calcasieu,        |
|           | Caldwell, Cameron, Catahoula, Claiborne, Concordia, De   |
|           | Soto, East Baton Rouge, East Carroll, East Feliciana,    |
|           | Evangeline, Franklin, Grant, Iberia, Iberville, Jackson, |
|           | Jefferson, Jefferson Davis, La Salle, Lafayette,         |
|           | Lafourche, Lincoln, Livingston, Madison, Morehouse,      |
|           | Natchitoches, Orleans, Ouachita, Plaquemines, Pointe     |
|           | Coupee, Rapides, Red River, Richland, Sabine, St.        |
|           | Bernard, St. Charles, St. Helena, St. James, St. John    |
|           | the Baptist, St. Landry, St. Martin, St. Mary, St.       |
|           | Tammany, Tangipahoa, Tensas, Terrebonne, Union,          |
|           | Vermilion, Vernon, Washington, Webster, West Baton       |
|           | Rouge, West Carroll, West Feliciana, and Winn Parishes   |
+-----------+----------------------------------------------------------+
| **Miss    | Adams, Alcorn, Amite, Attala, Benton, Bolivar, Calhoun,  |
| issippi** | Carroll, Chickasaw, Choctaw, Claiborne, Clarke, Clay,    |
|           | Coahoma, Copiah, Covington, DeSoto, Forrest, Franklin,   |
|           | George, Greene, Grenada, Hancock, Harrison, Hinds,       |
|           | Holmes, Humphreys, Issaquena, Itawamba, Jackson, Jasper, |
|           | Jefferson, Jefferson Davis, Jones, Kemper, Lafayette,    |
|           | Lamar, Lauderdale, Lawrence, Leake, Lee, Leflore,        |
|           | Lincoln, Lowndes, Madison, Marion, Marshall, Monroe,     |
|           | Montgomery, Neshoba, Newton, Noxubee, Oktibbeha, Panola, |
|           | Pearl River, Perry, Pike Pontotoc, Prentiss, Quitman,    |
|           | Rankin, Scott, Sharkey, Simpson, Smith, Stone,           |
|           | Sunflower, Tallahatchie, Tate, Tippah, Tishomingo,       |
|           | Tunica, Union, Walthall, Warren, Washington, Wayne,      |
|           | Webster, Wilkinson, Winston, Yalobusha, and Yazoo        |
|           | Counties                                                 |
+-----------+----------------------------------------------------------+

**Attachment 2 -- Notice SL-2005-01**

**Modifications to labor standards contract clauses for work affected by
the suspension (referenced by HUD form):**

+---------------------------+----+------------------------------------+---+
| **HUD-2554, Supplementary | ** |                                    |   |
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|                           | ** |                                    |   |
+---------------------------+----+------------------------------------+---+
| **Articles 2, 3 and 4     | A  | Withholding.                       |   |
| remain in force, as       | .2 |                                    |   |
| written.**                |    |                                    |   |
+---------------------------+----+------------------------------------+---+
|                           | A  | Compliance with Copeland Act       |   |
|                           | .5 | Requirements.                      |   |
|                           |    |                                    |   |
|                           |    | (modified as follows)              |   |
|                           |    |                                    |   |
|                           |    | The contractor shall comply with   |   |
|                           |    | the requirements of 29 CFR Part 3  |   |
|                           |    | which, with the exception of 29    |   |
|                           |    | CFR Part 3, Section 3.3, are       |   |
|                           |    | incorporated by reference in this  |   |
|                           |    | contract.                          |   |
+---------------------------+----+------------------------------------+---+
|                           | A  | Subcontracts. (modified as         |   |
|                           | .6 | follows)                           |   |
|                           |    |                                    |   |
|                           |    | The contractor or subcontractor    |   |
|                           |    | will insert in any subcontracts    |   |
|                           |    | the clauses contained in 29 CFR    |   |
|                           |    | 5.5(a) as applied herein 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  |   |
|                           |    | applicable contract clauses in 29  |   |
|                           |    | CFR 5.5.                           |   |
+---------------------------+----+------------------------------------+---+
|                           | A  | Contract termination; debarment.   |   |
|                           | .7 |                                    |   |
+---------------------------+----+------------------------------------+---+
|                           | A  | Compliance with Davis-Bacon and    |   |
|                           | .8 | Related Act Requirements.          |   |
+---------------------------+----+------------------------------------+---+
|                           | A  | Disputes concerning labor          |   |
|                           | .9 | standards.                         |   |
+---------------------------+----+------------------------------------+---+
|                           | A. | Certification of Eligibility.      |   |
|                           | 10 |                                    |   |
+---------------------------+----+------------------------------------+---+
|                           | B. | Contract Work Hours and Safety     |   |
|                           |    | Standards Act.                     |   |
+---------------------------+----+------------------------------------+---+

+----------------------------+----+------------------------------------+
| **HUD-4010, Federal Labor  | ** |                                    |
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|                            | ** |                                    |
+----------------------------+----+------------------------------------+
| **Paragraphs B and C       | A  | Withholding.                       |
| remain in force, as        | .2 |                                    |
| written.**                 |    |                                    |
+----------------------------+----+------------------------------------+
|                            | A  | Compliance with Copeland Act       |
|                            | .5 | Requirements                       |
|                            |    |                                    |
|                            |    | (modified as follows)              |
|                            |    |                                    |
|                            |    | The contractor shall comply with   |
|                            |    | the requirements of 29 CFR Part 3  |
|                            |    | which, with the exception of 29    |
|                            |    | CFR Part 3, Section 3.3, are       |
|                            |    | incorporated by reference in this  |
|                            |    | contract.                          |
+----------------------------+----+------------------------------------+
|                            | A  | Subcontracts. (modified as         |
|                            | .6 | follows)                           |
|                            |    |                                    |
|                            |    | The contractor or subcontractor    |
|                            |    | will insert in any subcontracts    |
|                            |    | the clauses contained in this      |
|                            |    | paragraph A as applied herein 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  |
|                            |    | applicable contract clauses in     |
|                            |    | this paragraph.                    |
+----------------------------+----+------------------------------------+
|                            | A  | Contract termination; debarment.   |
|                            | .7 |                                    |
+----------------------------+----+------------------------------------+
|                            | A  | Compliance with Davis-Bacon and    |
|                            | .8 | Related Act Requirements.          |
+----------------------------+----+------------------------------------+
|                            | A  | Disputes concerning labor          |
|                            | .9 | standards.                         |
+----------------------------+----+------------------------------------+
|                            | A. | Certification of Eligibility.      |
|                            | 10 |                                    |
+----------------------------+----+------------------------------------+

+----------------------------+----+------------------------------------+
| **HUD-5370, General        | ** |                                    |
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|                            | ep |                                    |
|                            | la |                                    |
|                            | ce |                                    |
|                            | wi |                                    |
|                            | th |                                    |
|                            | mo |                                    |
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|                            | .) |                                    |
|                            | ** |                                    |
+----------------------------+----+------------------------------------+
| **All other clauses remain | \  | Withholding of funds.              |
| in force, as written.**    | (b |                                    |
|                            | \) |                                    |
+----------------------------+----+------------------------------------+
|                            | \  | Compliance with Copeland Act       |
|                            | (e | requirements.                      |
|                            | \) |                                    |
|                            |    | (modified as follows)              |
|                            |    |                                    |
|                            |    | The Contractor shall comply with   |
|                            |    | the requirements of 29 CFR Part 3  |
|                            |    | which, with the exception of 29    |
|                            |    | CFR Part 3, Section 3.3, are       |
|                            |    | incorporated by reference in this  |
|                            |    | contract.                          |
+----------------------------+----+------------------------------------+
|                            | \  | Contract termination; debarment.   |
|                            | (f |                                    |
|                            | \) |                                    |
+----------------------------+----+------------------------------------+
|                            | \  | Compliance with Davis-Bacon and    |
|                            | (g | related Act requirements.          |
|                            | \) |                                    |
+----------------------------+----+------------------------------------+
|                            | \  | Disputes concerning labor          |
|                            | (h | standards.                         |
|                            | \) |                                    |
+----------------------------+----+------------------------------------+
|                            | \  | Certification of eligibility.      |
|                            | (i |                                    |
|                            | \) |                                    |
+----------------------------+----+------------------------------------+
|                            | \  | Contract Work Hours and Safety     |
|                            | (j | Standards Act.                     |
|                            | \) |                                    |
+----------------------------+----+------------------------------------+
|                            | \  | Subcontracts. (modified as         |
|                            | (k | follows)                           |
|                            | \) |                                    |
|                            |    | The Contractor or subcontractor    |
|                            |    | shall insert in any subcontracts   |
|                            |    | the provisions contained in this   |
|                            |    | clause as applied herein and such  |
|                            |    | other clauses as HUD or its        |
|                            |    | designee may by appropriate        |
|                            |    | instructions require, and also a   |
|                            |    | clause requiring the               |
|                            |    | subcontractors to include these    |
|                            |    | provisions in any lower tier       |
|                            |    | subcontracts. The prime Contractor |
|                            |    | shall be responsible for the       |
|                            |    | compliance by any subcontractor or |
|                            |    | lower tier subcontractor with      |
|                            |    | these provisions as applied        |
|                            |    | herein.                            |
+----------------------------+----+------------------------------------+