The Davis-Bacon Act of 1931 requires contractors to pay local prevailing wages for public works projects. This requirement applies to many HUD programs, including HUD 221(d)(4) loans. Small businesses that are looking to finance a HUD 221(d)(4) loan should be aware of the Davis-Bacon Act and its requirements. To learn more about HUD multifamily construction loans like the HUD 221(d)(4) loan, click here.