Housing Supply Expansion Act
Bill: S.3941 | Sponsor: Sen. Thune, John (R-SD)
Policy area: Housing and Community Development

Summary:
Housing Supply Expansion Act
This bill modifies the federal prevailing wage rates that apply to federally assisted housing and requires the Department of Labor to review and revise its process for determining prevailing wage rates.
Specifically, the bill applies the prevailing wage rate for residential construction to all housing projects that receive assistance under specified federal statutes. (Under current law, the residential construction prevailing wage rate applies to the construction, alteration, or repair of single-family homes or apartment buildings up to four floors in height.)

To amend subchapter IV of chapter 31 of title 40, United States Code, 
 regarding prevalent wage determinations in order to expand access to 
              affordable housing, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Housing Supply Expansion Act''.

SEC. 2. UPDATES TO WAGE RATE CALCULATIONS.

    (a) In General.--Section 3142(b) of title 40, United States Code, 
is amended by inserting ``or from geographic groupings other than civil 
subdivisions of the State (which may include metropolitan statistical 
areas or other groupings determined appropriate by the Secretary)'' 
after ``in which the work is to be performed''.
    (b) Changes to Survey Methodology.--Section 3142 of title 40, 
United States Code, is amended by adding at the end the following:
    ``(f) Survey Information Collection.--By not later than 1 year 
after the date of enactment of the Housing Supply Expansion Act, the 
Secretary shall--
            ``(1) review the Secretary's method of collecting survey 
        information for determining prevailing wages for purposes of 
        subsection (a); and
            ``(2) revise how such survey information is collected, 
        following a public notice and opportunity for public comment, 
        by--
                    ``(A) including surveys that allow for reliable and 
                objective sources of data and a defendable methodology, 
                which may include information collected through Bureau 
                of Labor Statistics surveys; and
                    ``(B) improving the percentage of businesses 
                choosing to participate in prevailing wage 
                determination surveys and ensuring proportional 
                representation of businesses represented by labor 
                organizations and businesses not represented by labor 
                organizations in the prevailing wage determination 
                surveys that are completed.''.

SEC. 3. MULTIPLE WAGE RATE DETERMINATIONS.

    Section 3142 of title 40, United States Code, as amended by section 
2, is further amended by adding at the end the following:
    ``(g) Federal Housing Acts.--A determination of prevailing wages by 
the Secretary of Labor applicable under section 212(a) of the National 
Housing Act (12 U.S.C. 1715c(a)), section 104(b)(1) of the Native 
American Housing Assistance and Self Determination Act of 1996 (25 
U.S.C. 4114(b)(1)), section 12(a) of the United States Housing Act of 
1937 (42 U.S.C. 1437j(a)), or section 811(j)(5) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 8013(j)(5)) shall 
be limited to 1 wage rate determination under subsection (b) of this 
section that corresponds to the overall residential character of the 
project.''.

SEC. 4. DAVIS-BACON MODERNIZATION WORKING GROUP.

    (a) Definition.--In this section, the term ``Davis-Bacon 
Modernization Working Group'' means the working group established under 
subsection (b)(1).
    (b) Establishment.--
            (1) In general.--Not later than 60 days after the date of 
        enactment of this Act, the Secretary of Labor, in consultation 
        with the Secretary of Housing and Urban Development, shall 
        establish within the Department of Labor, a Davis-Bacon 
        Modernization Working Group to recommend the update and 
        modernization of certain requirements under subchapter IV of 
        chapter 31 of title 40, United States Code, as described in 
        subsection (c).
            (2) Date of establishment.--The Davis-Bacon Modernization 
        Working Group shall be considered established on the date on 
        which a majority of the members of the Davis-Bacon Working 
        Group have been appointed, consistent with subsection (d).
    (c) Duties.--The Davis-Bacon Modernization Working Group shall--
            (1) recommend whether, and if so by how much, the 
        residential classification can be applied to affordable housing 
        units with 5 stories or more for purposes of prevailing wage 
        determinations under subchapter IV of chapter 31 of title 40, 
        United States Code;
            (2) develop administrative and legislative recommendations 
        of ways, and for what specific circumstances in which, the 
        prevailing wage rate requirements under subchapter IV of 
        chapter 31 of title 40, United States Code, could be waived or 
        streamlined for certain affordable rental Federal Housing 
        Administration new construction projects; and
            (3) review the potential positive and negative outcomes of 
        directing the Bureau of Labor Statistics to determine 
        prevailing wages (rather that the Secretary of Labor under 
        section 3142(b) of title 40, United States Code), in a way that 
        would not rely on the collection of voluntary surveys from 
        businesses but rather on data that is already collected by the 
        Bureau of Labor Statistics.
    (d) Members.--
            (1) In general.--The Davis-Bacon Modernization Working 
        Group shall be composed of the following representatives of 
        Federal agencies and relevant non-Federal industry stakeholder 
        organizations:
                    (A) A representative from the Department of Labor, 
                appointed by the Secretary of Labor.
                    (B) A representative from the Department of Housing 
                and Urban Development, appointed by the Secretary of 
                Housing and Urban Development.
                    (C) A representative of a housing construction 
                industry association, appointed by the Secretary of 
                Labor in consultation with the Secretary of Housing and 
                Urban Development.
                    (D) A representative of a financial services 
                industry association, appointed by the Secretary of 
                Labor in consultation with the Secretary of Housing and 
                Urban Development.
                    (E) A representative of an affordable housing 
                industry association, appointed by the Secretary of 
                Labor in consultation with the Secretary of Housing and 
                Urban Development.
                    (F) A representative of a State public housing 
                agency, as defined in section 3 of the United States 
                Housing Act of 1937 (42 U.S.C. 1437a), appointed by the 
                Secretary of Labor in consultation with the Secretary 
                of Housing and Urban Development.
                    (G) A representative of a tribally designated 
                housing entity, as defined in section 4 of the Native 
                American Housing Assistance and Self-Determination Act 
                of 1996 (25 U.S.C. 4103), appointed by the Secretary of 
                Labor in consultation with the Secretary of Housing and 
                Urban Development.
                    (H) A representative of a labor organization 
                representing the housing construction workforce, 
                appointed by the Secretary of Labor in consultation 
                with the Secretary of Housing and Urban Development.
            (2) Chair.--The representative from the Department of Labor 
        appointed under paragraph (1)(A) shall serve as the chair of 
        the Davis-Bacon Modernization Working Group, and that 
        representative shall be responsible for organizing the business 
        of the Davis-Bacon Modernization Working Group.
    (e) Other Matters.--
            (1) No compensation.--A member of the Davis-Bacon 
        Modernization Working Group shall serve without compensation.
            (2) Support.--The Secretary of Labor may detail an employee 
        of the Department of Labor to assist and support the work of 
        the Davis-Bacon Modernization Working Group, though such a 
        detailee shall not be considered to be a member of the Davis-
        Bacon Modernization Working Group.
    (f) Report.--
            (1) Reports.--Not later than 1 year after the date on which 
        the Davis-Bacon Modernization Working Group is established, the 
        Davis-Bacon Modernization Working Group shall submit a report 
        containing its findings and recommendations under subsection 
        (c), including recommendations resulting from the review under 
        subsection (c)(3), to the Secretary of Labor, the Committee on 
        Health, Education, Labor, and Pensions of the Senate and the 
        Committee on Education and Labor of the House of 
        Representatives.
            (2) Majority support.--Each recommendation made under 
        paragraph (1) shall be agreed to by a majority of the members 
        of the Davis-Bacon Modernization Working Group.
    (g) Nonapplicability of FACA.--The Federal Advisory Committee Act 
(5 U.S.C. App.) shall not apply to the Davis-Bacon Modernization 
Working Group.
    (h) Sunset.--The Davis-Bacon Modernization Working Group shall 
terminate on the date the report is completed under subsection (f)(1).

SEC. 5. NATIONAL HOUSING ACT.

    Section 212(a) of the National Housing Act (12 U.S.C. 1715c(a)) is 
amended by striking ``similar character, as determined by the Secretary 
of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 
276a--276a-5)'' and inserting ``residential character, as determined by 
the Secretary of Labor in accordance with subchapter IV of chapter 31 
of title 40, United States Code, that is applicable at the time the 
application is filed''.

SEC. 6. HOUSING ACT OF 1959.

    Section 202(j)(5)(A) of the Housing Act of 1959 (12 U.S.C. 
1701q(j)(5)(A)) is amended by striking ``similar character, as 
determined by the Secretary of Labor in accordance with the Act of 
March 3, 1931 (commonly known as the Davis-Bacon Act)'' and inserting 
``residential character, as determined by the Secretary of Labor in 
accordance with subchapter IV of chapter 31 of title 40, United States 
Code, that is applicable at the time the application is filed''.

SEC. 7. NATIVE AMERICAN HOUSING ASSISTANCE AND SELF-DETERMINATION ACT 
              OF 1996.

    Section 104(b)(1) of the Native American Housing Assistance and 
Self-Determination Act of 1996 (25 U.S.C. 4114(b)(1)) is amended by 
striking ``, as predetermined by the Secretary of Labor pursuant to the 
Act of March 3, 1931 (commonly known as the Davis-Bacon Act; chapter 
411; 46 Stat. 1494; 40 U.S.C. 276a et seq.),'' and inserting ``for 
corresponding classes of laborers and mechanics employed on 
construction of a residential character, as predetermined by the 
Secretary of Labor pursuant to subchapter IV of chapter 31 of title 40, 
United States Code, that is applicable at the time the application is 
filed''.

SEC. 8. CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT.

    Section 811(j)(5)(A) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 8013(j)(5)(A)) is amended by striking ``similar 
character, as determined by the Secretary of Labor in accordance with 
the Act of March 3, 1931 (commonly known as the Davis-Bacon Act)'' and 
inserting ``residential character, as determined by the Secretary of 
Labor in accordance with subchapter IV of chapter 31 of title 40, 
United States Code, that is applicable at the time the application is 
filed''.

SEC. 9. UNITED STATES HOUSING ACT OF 1937.

    Section 12(a) of the United States Housing Act of 1937 (42 U.S.C. 
1437j(a)) is amended by striking ``, as predetermined by the Secretary 
of Labor pursuant to the Davis-Bacon Act (49 Stat. 1011)'' and 
inserting ``for corresponding classes of laborers and mechanics 
employed on construction of a residential character, as predetermined 
by the Secretary of Labor pursuant to subchapter IV of chapter 31 of 
title 40, United States Code, that is applicable at the time the 
application is filed''.
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