Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Notices 12511 

of company officers. This collection of 

information is authorized by the SAFE 

Port Act (P.L. 109–347). 

CBP proposes to establish a collection 

of information for a new program 

known as the Trusted Trader Program. 

The Trusted Trader Program will 

involve a unification of supply chain 

security aspects of the current C–TPAT 

Program and the internal controls of the 

Importer Self-Assessment (ISA) Program 

to integrate supply chain security and 

trade compliance. The goals of the 

Trusted Trader Program are to 

strengthen security by leveraging the C– 

TPAT supply chain requirements and 

validation, identify low-risk trade 

entities for supply chain security and 

trade compliance, and increase the 

overall efficiency of trade by segmenting 

risk and processing by account. This 

Program applies to importer participants 

who have satisfied C–TPAT supply 

chain security and trade compliance 

requirements. The Trusted Trader 

application will include questions about 

the following: 

Name and contact information for the 

applicant; 

Business information including 

business type, CBP Bond information, 

and number of employees; 

Information about the applicant’s 

Supply Chain Security Profile; and 

Trade Compliance Profile and 

Operating Procedures of the applicant. 

Respondents will apply to participate 

in the Trusted Trader Program using an 

on-line application available through 

the C–TPAT portal. The draft Trusted 

Trader Program application may be 

viewed at: http://www.cbp.gov/sites/

default/files/documents/

Trusted%20Trader%20Application.pdf. 

After an importer obtains Trusted 

Trader Program membership, the 

importer will be required to submit an 

Annual Notification Letter to CBP 

confirming that they are continuing to 

meet the requirements of the Trusted 

Trader Program. This letter should 

include: personnel changes that impact 

the Trusted Trader Program; 

organizational and procedural changes; 

a summary of risk assessment and selftesting results; a summary of post-entry 

amendments and/or disclosures made to 

CBP; and any importer activity changes 

within the last 12-month period. 

Current Actions: This submission is 

being made to revise the current 

information collection by adding the 

Trusted Trader Application and Annual 

Notification Letter. 

Type of Review: Revision. 

Affected Public: Businesses. 

C–TPAT Program Application: 

Estimated Number of Respondents: 

2,541. 

Estimated Number of Responses per 

Respondent: 1. 

Estimated Time per Response: 5 

hours. 

Estimated Total Annual Burden 

Hours: 12,705. 

Trusted Trader Program Application: 

Estimated Number of Respondents: 

75. 

Estimated Number of Responses per 

Respondent: 1. 

Estimated Time per Response: 90 

minutes. 

Estimated Total Annual Burden 

Hours: 112.5. 

Trusted Trader Program’s Annual 

Notification Letter: 

Estimated Number of Respondents: 

75. 

Estimated Number of Responses per 

Respondent: 1. 

Estimated Time per Response: 60 

minutes. 

Estimated Total Annual Burden 

Hours: 75. 

Dated: March 2, 2015. 

Tracey Denning, 

Agency Clearance Officer, U.S. Customs and 

Border Protection. 

[FR Doc. 2015–05359 Filed 3–6–15; 8:45 am] 

BILLING CODE 9111–14–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–5242–N–03] 

Applicability of Davis-Bacon Labor 

Requirements to Projects Selected as 

Existing Housing Under the Section 8 

Project-Based Voucher Program— 

Guidance 

AGENCY: Office of the Assistant 

Secretary for Public and Indian 

Housing, HUD. 

ACTION: Notice. 

SUMMARY: On June 25, 2014, HUD 

published a final rule amending the 

regulations for HUD’s Section 8 ProjectBased Voucher program. This notice 

supplements that final rule by providing 

further guidance on when Davis-Bacon 

wage requirements may apply to 

existing housing. 

DATES: March 9, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Becky Primeaux, Director, Housing 

Voucher Management and Operations 

Division, Office of Voucher Programs, 

Office of Public and Indian Housing, 

Department of Housing and Urban 

Development, 451 7th Street SW., Room 

4228, Washington, DC 20410; telephone 

number 202–708–2815 (this is not a tollfree number). Individuals with speech 

or hearing impairments may access this 

number through TTY by calling the tollfree Federal Information Service at 800– 

877–8339. 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. Section 8 Project-Based Voucher 

Assistance—June 25, 2014, Final Rule 

On June 25, 2014, at 79 FR 36146, 

HUD published a final rule that 

amended the regulations governing the 

Section 8 Project-Based Voucher (PBV) 

program, largely due to changes made to 

the PBV program by the Housing and 

Economic Recovery Act of 2008 (Pub. L. 

110–289, approved July 30, 2008) 

(HERA). HERA made comprehensive 

and significant reforms to several HUD 

programs, including HUD’s Public 

Housing, Section 8 Tenant-Based 

Voucher, and PBV programs. On 

November 24, 2008, at 73 FR 71037, 

HUD published a notice that provided 

information about the applicability of 

certain HERA provisions to these 

programs. The notice identified: (1) 

those statutory provisions that were selfexecuting and required no action on the 

part of HUD for the changes to be 

implemented; and (2) those statutory 

provisions that require new regulations 

or regulatory changes by HUD for the 

HERA provisions to be implemented. 

The notice also offered the opportunity 

for public comment on the guidance 

provided. 

HUD followed the November 2008 

notice with a proposed rule published 

on May 15, 2012, at 77 FR 28742, that 

proposed to establish, in regulation, the 

reforms made by HERA solely to the 

Section 8 Tenant-Based Voucher and 

PBV programs as discussed in the 

November 2008 notice, to make other 

related changes to the regulations, and 

to further solicit public comment. The 

final rule published on June 25, 2014, 

conformed the regulations of the Section 

8 Tenant-Based Voucher and PBV 

programs to the statutory program 

changes made by HERA, made other 

related changes to these regulations as 

discussed in the May 2012 proposed 

rule, and made further changes to the 

two voucher program regulations as a 

result of issues raised by public 

comment and certain clarifying changes 

determined needed by HUD. 

One of the changes made by the June 

25, 2014, final rule pertained to labor 

standards. In the final rule, HUD 

updated the reference to labor standards 

provisions that are applicable to 

assistance under the PBV program to 

remove the reference to labor standards 

‘‘applicable to an Agreement’’ covering 

nine or more assisted units and 

substitute a reference to labor standards 

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12512 Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Notices 

‘‘applicable to development (including 

rehabilitation) of a project comprising’’ 

nine or more assisted units. HUD 

advised that this language clarifies that 

Davis-Bacon requirements may apply to 

existing housing (which is not subject to 

an Agreement to Enter into Housing 

Assistance Payments (HAP) Contract) 

when the nature of any work planned to 

be performed prior to execution of a 

HAP Contract, or after HAP Contract 

execution (within such post-execution 

period as may be specified by HUD) 

constitutes development of the project. 

The final rule also amended the owner 

certification provision of the regulation 

to state that repair work on a project 

selected as an existing project that is 

performed within such post-execution 

period as specified by HUD may 

constitute development activity, and the 

owner, by execution of the HAP 

Contract, certifies that at execution and 

at all times during the term of the HAP 

Contract, if the repair work is 

determined to be development activity, 

the repair work undertaken shall be in 

compliance with Davis-Bacon wage 

requirements. 

As noted in the Summary, this notice 

supplements the June 25, 2014 final rule 

by providing further guidance on the 

applicability of Davis-Bacon to existing 

housing. 

B. Existing Housing Under the PBV 

Program 

Under the PBV program, a public 

housing agency (PHA) may provide 

project-based assistance for existing 

housing, as well as for newly 

constructed or rehabilitated housing. 

This provision was put in place by the 

Quality Housing and Work 

Responsibility Act of 1998 (Pub. L. 105– 

276, approved October 21, 1998) as 

further revised by the Fiscal year 2001 

Departments of Veterans Affairs and 

Housing and Urban Development and 

Independent Agencies Appropriations 

Act (Pub. L. 106–377, approved October 

27, 2000) and implemented by HUD 

final rule published on October 13, 

2005, at 70 FR 59892. In accordance 

with the 2005 final rule, to qualify as 

‘‘existing housing’’, the units must 

already exist and substantially comply 

with HUD’s housing quality standards 

(HQS) on the proposal selection date, 

which is the date the PHA gives written 

notice to the owner that the owner’s 

proposal has been selected. The units 

must fully comply with the HQS before 

execution of the HAP contract. 

C. Section 12(a) of the United States 

Housing Act of 1937 

HUD’s Section 8 program, including 

the PBV program, is subject to statutory 

labor standards provisions in section 

12(a) of the U.S. Housing Act of 1937 

(1937 Act) (42 U.S.C. 1437j(a)). Section 

12(a) provides in relevant part as 

follows: 

Any contract for loans, contributions, sale, 

or lease pursuant to this Act . . . shall . . . 

contain a provision that not less than the 

wages prevailing in the locality, as 

predetermined by the Secretary of Labor 

pursuant to the Davis-Bacon Act (49 Stat. 

1011), shall be paid to all laborers and 

mechanics employed in the development of 

the project involved (including a project with 

nine or more units assisted under section 8 

of this Act, where the public housing agency 

or the Secretary and the builder or sponsor 

enter into an agreement for such use before 

construction or rehabilitation is commenced). 

Under the Davis-Bacon Act, DavisBacon prevailing wage rates determined 

by the United States Department of 

Labor apply to construction (including 

rehabilitation) contracts in excess of 

$2000. 

II. Applicability of Davis-Bacon Wage 

Requirements 

A. Applicability in Development of 

Existing Project-Based Voucher Units 

As noted above, to ensure statutory 

compliance, the June 25, 2014, final rule 

revised the cross-reference to the labor 

standards in § 983.4 (entitled ‘‘Crossreference to other Federal 

requirements’’) to clarify that even 

though an ‘‘Agreement to Enter into 

Housing Assistance Payments Contract’’ 

is not executed for existing housing 

projects, Davis-Bacon requirements may 

still apply, and revised § 983.210 

(entitled ‘‘Owner certification’’) to 

provide for an owner certification that 

repair work that is undertaken on an 

existing housing project and is 

determined to be development activity 

shall be in compliance with DavisBacon requirements. The preamble to 

the June 25, 2014, final rule clarifies 

that Davis-Bacon requirements may 

apply to existing PBV units when the 

nature of any work planned to be 

performed prior to HAP contract 

execution or within a HUD-defined post 

HAP contract execution period 

constitutes development of the project. 

B. Development of the Section 8 Project 

The term ‘‘development’’ is defined in 

the PBV program as construction or 

rehabilitation of PBV housing after the 

proposal selection date. HUD has found 

that given the current, broad definition 

of ‘‘existing housing’’, the potential for 

circumvention of rehabilitation program 

requirements exists. These requirements 

include compliance with labor 

standards when rehabilitation of 

existing housing is contemplated in 

connection with the placement of units 

under Section 8. The potential 

circumvention stems from the fact that 

PHAs can classify a project as ‘‘existing 

housing’’ and this classification does 

not preclude owners and developers 

from performing work that may fall 

within the scope of Davis-Bacon. Both 

the PBV Final Rule and this Notice 

make clear that Davis-Bacon 

requirements cannot be avoided simply 

by classifying a project as an existing 

housing project under the PBV 

regulation. 

The scope and timing of the 

contemplated development work are 

important measures in determining 

whether Davis-Bacon requirements 

apply to existing housing under the PBV 

program. 

1. Scope 

‘‘Scope’’ refers to the elements of the 

proposed work, that is, the specific 

activities that are involved. An analysis 

of the scope of the proposed work is 

performed by the relevant PHA to 

determine if such work represents 

‘‘development’’ for purposes of 

determining the applicability of DavisBacon wage rates to existing housing 

undergoing construction or 

reconstruction activity within the time 

period discussed below in Section B.2. 

of this Notice. 

Development work is subject to DavisBacon wage rates, and, when used in 

reference to public housing, 

‘‘development’’ is defined in section 

3(c)(1) of the 1937 Act as any or all 

undertakings necessary for planning, 

land acquisition, demolition, 

construction, or equipment, in 

connection with a low-income housing 

project. Section 3(c)(1) also states that 

‘‘construction activity’’ in connection 

with a low-income housing project may 

be confined to the reconstruction, 

remodeling, or repair of existing 

buildings. 

The 1937 Act defines ‘‘development’’ 

only as the term is used in reference to 

public housing. However, the 1937 Act 

also applies Davis-Bacon requirements 

to ‘‘development’’ of projects under 

Section 8 of the Act, such as PBV 

projects. It is HUD’s position, therefore, 

that the term ‘‘development’’, as applied 

to work subject to Davis-Bacon 

requirements on Section 8 projects, 

encompasses work on a Section 8 

project that is comparable to the scope 

of work that HUD has previously 

determined constitutes development of 

a public housing project. Accordingly, 

work that constitutes remodeling that 

alters the nature or type of housing units 

in a PBV project, reconstruction, or a 

substantial improvement in the quality 

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Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Notices 12513 

1See http://portal.hud.gov/hudportal/documents/ 

huddoc?id=pih2012-32rev1.pdf 

or kind of original equipment and 

materials, falls within the purview of 

‘‘development’’. Development activity 

on a PBV project does not include 

replacement of equipment and materials 

rendered unsatisfactory because of 

normal wear and tear by items of 

substantially the same kind. 

2. Timing 

Development work planned to be 

carried out after the proposal selection 

date (either before or after execution of 

the HAP contract) within a period 

reasonably viewed as one in which the 

Section 8 housing is being developed (as 

opposed to being maintained, repaired 

or updated years after original 

placement of the units under Section 8), 

is an important factor in analyzing 

whether the work requires payment of 

Davis-Bacon wages to laborers and 

mechanics employed to perform such 

work. It has long been HUD’s position, 

consistent with the intent to privatize 

responsibility for housing for lowincome persons under the Section 8 

program, that once a Section 8 housing 

project has been initially developed and 

placed under a HAP Contract, a decision 

by the owner to repair or rehabilitate the 

housing as it ages is not continued 

‘‘development’’ of the Section 8 project 

and is not subject to Davis-Bacon wage 

requirements under Section 12 of the 

1937 Act. 

HUD has determined that any 

development initiated on existing units 

within 18 months after the effective date 

of the HAP Contract on projects 

consisting of 9 or more units assisted 

under a PBV HAP Contract is 

considered development for purposes of 

Davis-Bacon wage rate applicability and 

such wages must be paid to laborers and 

mechanics employed to perform 

development work in connection with 

this initial placement of the project 

under a Section 8 contract. 

C. PBV Existing Housing and the Rental 

Assistance Demonstration Program 

(RAD) 

Under HUD’s final Notice announcing 

the RAD program (PIH–2012–32 (HA)),1

issued July 2, 2013, the second 

component of the RAD program (RAD II) 

consisted of conversions of Section 8 

Tenant Protection Vouchers in projects 

with expiring or terminating Rent 

Supplement, Rental Assistance Program, 

or Section 8 Moderate Rehabilitation 

contracts to PBVs. The final RAD Notice 

specifically provided that conversion of 

public housing projects under the first 

component of the RAD program would 

be subject to Davis-Bacon wage 

requirements. The last paragraph of 

Section 3.5 of the final RAD Notice 

states that all regulatory and statutory 

requirements of the PBV program in 24 

CFR part 983 apply to conversions 

carried out under RAD II (with certain 

exceptions not relevant to this guidance) 

but did not directly address the 

applicability of Davis-Bacon wage 

requirements to RAD II projects. 

Language on Davis-Bacon requirements 

elsewhere in the RAD Notice may have 

led to uncertainty regarding the 

applicability of Davis-Bacon 

requirements for RAD II projects that 

met the PBV definition of existing 

housing. This Notice makes clear that, 

as more specifically discussed above in 

Section II. B., rehabilitation constitutes 

‘‘development’’ of a Section 8 project, 

including projects where the 

rehabilitation is contemplated as part of 

the conversion of an existing project to 

a PBV contract under RAD, and 

regardless of whether the rehabilitation 

addresses Housing Quality Standards 

(HQS) deficiencies or is undertaken for 

other reasons. Accordingly, such 

rehabilitation is subject to Davis-Bacon 

requirements pursuant to Section 12(a) 

of the 1937 Act regardless of whether 

the housing would qualify as ‘‘existing 

housing’’ as defined in part 983. 

D. Addendum to Existing HAP Contract 

In the case of PBV projects selected as 

rehabilitation or new construction, an 

Agreement to Enter into a Housing 

Assistance Payments Contract (AHAP) 

is required prior to the commencement 

of construction or rehabilitation. The 

AHAP contains federal requirements 

including applicable labor standards. 

Since existing housing does not require 

an AHAP, but development activity 

described in this guidance may require 

the payment of Davis-Bacon wages to 

laborers and mechanics, an addendum 

to the PBV HAP Contract that reflects 

the applicability of Davis-Bacon wage 

rates in the development of existing 

PBV housing is required when such 

development will take place within 18 

months of the effective date of the HAP 

Contract. The required addendum is 

attached to this notice as Appendix 1. 

E. Public Housing Agency (PHA) 

Responsibilities 

PHAs that select existing housing 

under the PBV program are responsible 

for monitoring compliance with DavisBacon requirements outlined in the 

Addendum to the Existing Housing 

Contract (Appendix 1). As provided in 

§ 983.210 of the PBV regulations, the 

owner, by execution of the HAP 

Contract, certifies that repair work that 

is undertaken on an existing housing 

project and is determined to be 

development activity shall be in 

compliance with Davis-Bacon 

requirements. Owner non-compliance 

with the requirements outlined in the 

Addendum represents grounds for 

termination of the HAP Contract. If the 

contract is terminated, the PHA must 

provide housing choice vouchers to 

families living in units covered by the 

PBV HAP Contract. 

Dated: February 26, 2015. 

Jemine A. Bryon, 

Acting Assistant Secretary for Public and 

Indian Housing. 

Appendix 1 Addendum to Existing 

HAP Contract—Labor Standards 

1. HUD-FEDERAL LABOR STANDARDS 

PROVISIONS 

The owner is responsible for inserting the 

entire text of section 1 of this Addendum in 

all construction contracts and, if the owner 

performs any rehabilitation work on the 

project, the owner must comply with all 

provisions of section 1. (Note: Sections 1(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 DavisBacon Act on behalf of laborers or 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 

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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 therefor 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, DC 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. 

(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 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. 

(D) The wage rate (including fringe benefits 

where appropriate) determined pursuant to 

subparagraphs (a)(1)(ii)(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 DavisBacon 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 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), except that full social 

security numbers and home addresses shall 

not be included on weekly transmittals. 

Instead the payrolls shall only need to 

include an individually identifying number 

for each employee (e.g., the last four digits of 

the employee’s social security number). The 

required weekly payroll information may be 

submitted in any form desired. Optional 

Form WH–347 is available for this purpose 

from the Wage and Hour Division Web site 

at http://www.dol.gov/esa/whd/forms/

wh347instr.htm or its successor site. The 

prime contractor is responsible for the 

submission of copies of payrolls by all 

subcontractors. Contractors and 

subcontractors shall maintain the full social 

security number and current address of each 

covered worker, and shall provide them upon 

request 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 

them to the applicant, sponsor, or owner, as 

the case may be, for transmission to HUD or 

its designee, the contractor, or the Wage and 

Hour Division of the Department of Labor for 

purposes of an investigation or audit of 

compliance with prevailing wage 

requirements. It is not a violation of this 

section for a prime contractor to require a 

subcontractor to provide addresses and social 

security numbers to the prime contractor for 

its own records, without weekly submission 

to the sponsoring government agency (or the 

applicant, sponsor, or owner). 

(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: (1) That the payroll for the 

payroll period contains the information 

required to be provided under 29 CFR 

5.5(a)(3)(ii), the appropriate information is 

being 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 

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Federal Register / Vol. 80, No. 45 / Monday, March 9, 2015 / Notices 12515 

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 

3801 et seq. 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, Office of Apprenticeship 

Training, Employer and Labor Services or 

with a State Apprenticeship Agency 

recognized by the Office, 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 Office of 

Apprenticeship Training, Employer and 

Labor Services or a State Apprenticeship 

Agency (where appropriate) to be eligible for 

probationary 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 journeyman’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 Office of 

Apprenticeship Training, Employer and 

Labor Services, or a State Apprenticeship 

Agency recognized by the Office, 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 

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 

Addendum. 

(6) Subcontracts. The contractor or 

subcontractor will insert in any subcontracts 

the clauses contained in section 1(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 1(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. 

(10)(i) Certification of Eligibility. By 

entering into this Addendum, 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 Contract 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. 

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(iii) The penalty for making false 

statements is prescribed in the U.S. Criminal 

Code, 18 U.S.C. 1001. 

11. Complaints, Proceedings, or Testimony 

by Employees. No laborer or mechanic to 

whom the wage, salary, or other labor 

standards provisions of this Addendum 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 

Addendum 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 

therefor 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 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 Federallyassisted 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) Subcontracts. The contractor or 

subcontractor shall insert in any subcontracts 

the clauses set forth in subparagraphs (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 or her 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 issued by the Secretary of Labor 

pursuant to 29 CFR part 1926, and failure to 

comply may result in imposition of sanctions 

pursuant to the Contract Work Hours and 

Safety Standards Act, 40 U.S.C. 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 Urban Development or the 

Secretary of Labor shall direct as a means of 

enforcing such provisions. 

2. WAGE AND CLAIMS ADJUSTMENTS 

The owner shall be responsible for the 

correction of all violations under section 1 of 

this Addendum, 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 Addendum 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 Addendum, 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 1 of this Addendum. 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 1. 

3. EVIDENCE OF UNIT(S) COMPLETION; 

ESCROW 

(a) The owner shall evidence the 

completion of the unit(s) by furnishing the 

PHA a certification of compliance with the 

provisions of sections 1 and 2 of this 

Addendum, 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 Addendum. 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 of this Addendum shall be paid 

to HUD, as escrowee, or to an escrowee 

designated by HUD, and the conditions and 

manner of releasing and approving such 

escrows shall be approved by HUD. 

[FR Doc. 2015–05462 Filed 3–6–15; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–5843–N–03] 

Privacy Act; Notice of Amended 

System of Records—Single Family 

Housing Enterprise Data Warehouse 

AGENCY: Office of the Chief Information 

Officer, HUD. 

ACTION: Notice amendment. 

SUMMARY: HUD is proposing to revise 

information published in the Federal 

Register about one of its system of 

records, the Single Family Housing 

Enterprise Data Warehouse (SFHEDW). 

The revision implemented under this 

republication, reflects current corrective 

and administrative changes to the 

system of records purpose, location, 

authority, and records retention 

captions. This update refines previously 

published details in a clear and 

cohesive format. This republication 

does not meet the threshold criteria 

established by the Office of Management 

and Budget (OMB) for a modified 

system of records report. A more 

detailed description of the present 

systems status is republished under this 

notice. This notice deletes and 

supersedes prior notice published in the 

Federal Register at 76 FR 66950 on 

October 28, 2011. The scope and 

functional purpose in place for this 

system remain unchanged. 

DATES: Effective Date: This action is 

effective immediately upon publication 

of this notice in the Federal Register. 

ADDRESSES: Interested persons are 

invited to submit comments regarding 

this notice to the Rules Docket Clerk, 

Office of the General Counsel, 

Department of Housing and Urban 

Development, 451 Seventh Street SW., 

Room 10276, Washington, DC 20410– 

0500. Communication should refer to 

the above docket number and title. A 

copy of each communication submitted 

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