§ 1715c. — Labor standards.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1715c]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER II--MORTGAGE INSURANCE
Sec. 1715c. Labor standards
(a) The Secretary shall not insure under section 1713 or section
1715a of this title or under section 1743 of this title pursuant to any
application for insurance filed subsequent to the effective date of this
section, or under section 1715e of this title, or under subchapter VII
of this chapter pursuant to any application filed subsequent to sixty
days after April 20, 1950, or under section 1748b or 1748h-2 of this
title, or under section 1750g of this title, a mortgage or investment
which covers property on which there is or is to be located a dwelling
or dwellings, or a housing project, the construction of which was or is
to be commenced subsequent to such date, unless the principal contractor
files a certificate or certificates (at such times, in course of
construction or otherwise, as the Secretary may prescribe) certifying
that the laborers and mechanics employed in the construction of the
dwelling or dwellings or the housing project involved have been paid not
less than the wages prevailing in the locality in which the work was
performed for the corresponding classes of laborers and mechanics
employed on construction of a similar character, as determined by the
Secretary of Labor, in accordance with sections 3141-3144, 3146, and
3147 of title 40, prior to the beginning of construction and after the
date of the filing of the application for insurance. The provisions of
this section shall also apply to the insurance of any loan or mortgage
under section 1715k or section 1715x of this title which covers property
on which there is located a dwelling or dwellings designed principally
for residential use for twelve or more families. The provisions of this
section shall apply to the insurance under section 1715l of this title
of any mortgage described in subsection (d)(3) or (d)(4) and (deeming
the term ``construction'' as used in the first sentence of this
subsection to mean rehabilitation) of any mortgage described in
subsection (h)(1) or section 1715z(j)(1) of this title which covers
property on which there is located a dwelling or dwellings designed
principally for residential use for more than eight families; except
that compliance with such provisions may be waived by the Secretary--
(1) with respect to mortgages described in such subsection
(d)(3) or (d)(4), in cases or classes of cases where laborers or
mechanics (not otherwise employed at any time in the construction of
the project) voluntarily donate their services without compensation
for the purpose of lowering their housing costs in a cooperative
housing project and the Secretary determines that any amounts saved
thereby are fully credited to the cooperative undertaking the
construction, and
(2) with respect to mortgages described in such subsection
(h)(1) or section 1715z(j)(1) of this title, in cases or classes of
cases where prospective owners of such dwellings, voluntarily donate
their services without compensation, or other persons (not otherwise
employed at any time in the rehabilitation of the property)
voluntarily donate their services without compensation, and the
Secretary determines that any amounts saved thereby are fully
credited to the nonprofit organization undertaking the
rehabilitation.
The provisions of this section shall also apply to the insurance of any
mortgage under sections 1715v, 1715w, or 1715z-1 of this title except
that compliance with such provisions may be waived by the Secretary in
cases or classes of cases where laborers or mechanics, not otherwise
employed at any time on the project, voluntarily donate their services
without full compensation for the purpose of lowering the costs of
construction and the Secretary determines that any amounts thereby saved
are fully credited to the nonprofit corporation, association, or other
organization undertaking the construction. The provisions of this
section shall also apply to the insurance of any mortgage under section
1715y(d) of this title. The provisions of this section shall also apply
to the insurance of any mortgage under section 1715z-7 of this title,
except that compliance with such provisions may be waived by the
Secretary in cases or classes of cases where laborers or mechanics, not
otherwise employed at any time on the project, voluntarily donate their
services without compensation for the purpose of lowering the costs of
construction and the Secretary determines that any amounts thereby saved
are fully credited to the nonprofit corporation, association, or other
organization undertaking the construction; and each laborer or mechanic
employed on any facility covered by a mortgage insured under section
1715z-7 of this title shall receive compensation at a rate not less than
one and one-half times his basic rate of pay for all hours worked in any
workweek in excess of eight hours in any workday or forty hours in the
workweek, as the case may be. The provisions of this section shall also
apply to the insurance of any mortgage under subchapter IX-B of this
chapter; and each laborer or mechanic employed on any facility covered
by a mortgage insured under such subchapter IX-B shall receive
compensation at a rate not less than one and one-half times his basic
rate of pay for all hours worked in any workweek in excess of eight
hours in any workday or forty hours in the workweek, as the case may be.
(b) The Secretary is authorized to make such rules and regulations
as may be necessary to carry out the provisions of this section.
(c) There is authorized to be appropriated for the remainder of the
fiscal year ending June 30, 1939, and for each fiscal year thereafter, a
sum sufficient to meet all necessary expenses of the Department of Labor
in making the determinations provided for in subsection (a) of this
section.
(June 27, 1934, ch. 847, title II, Sec. 212, as added June 3, 1939, ch.
175, Sec. 14, 53 Stat. 807; amended May 26, 1942, ch. 319, Sec. 10, 56
Stat. 303; Aug. 8, 1949, ch. 403, Sec. 3, 63 Stat. 576; Apr. 20, 1950,
ch. 94, title I, Secs. 113, 122, 64 Stat. 54, 59; Sept. 1, 1951, ch.
378, title II, Sec. 203, 65 Stat. 303; Aug. 2, 1954, ch. 649, title I,
Sec. 118, 68 Stat. 595; Pub. L. 86-372, title I, Sec. 110(f), title II,
Sec. 201(b), title VII, Sec. 704(c), Sept. 23, 1959, 73 Stat. 661, 667,
686; Pub. L. 87-70, title VI, Sec. 612(e), June 30, 1961, 75 Stat. 181;
Pub. L. 88-349, Sec. 3, July 2, 1964, 78 Stat. 239; Pub. L. 88-560,
title I, Sec. 119(b), Sept. 2, 1964, 78 Stat. 782; Pub. L. 89-117, title
I, Sec. 102(c), title II, Sec. 201(b)(4), Aug. 10, 1965, 79 Stat. 454,
465; Pub. L. 89-754, title III, Sec. 311, title V, Sec. 503, Nov. 3,
1966, 80 Stat. 1270, 1277; Pub. L. 90-19, Sec. 1(a) (3), May 25, 1967,
81 Stat. 17; Pub. L. 90-448, title I, Sec. 101(d), title II,
Sec. 201(b)(1), title XV, Sec. 1502, Aug. 1, 1968, 82 Stat. 484, 501,
600; Pub. L. 91-609, title I, Sec. 110(c), Dec. 31, 1970, 84 Stat. 1772;
Pub. L. 101-235, title I, Sec. 133(d)(2), Dec. 15, 1989, 103 Stat.
2027.)
References in Text
Section 1715a of this title, referred to in subsec. (a), which
related to additional housing insurance, was repealed by section 13 of
act June 3, 1939, ch. 175, 53 Stat. 807.
Effective date of this section, referred to in subsec. (a), probably
means June 3, 1939, the date of enactment of act June 3, 1939.
Subsections (d)(3), (d)(4), and (h)(1), referred to in subsec. (a),
are references to such subsections in section 1715l of this title.
Codification
``Sections 3141-3144, 3146, and 3147 of title 40'' substituted in
subsec. (a) for ``the Davis-Bacon Act, as amended'' on authority of Pub.
L. 107-217, Sec. 5(c), Aug. 21, 2002, 116 Stat. 1303, the first section
of which enacted Title 40, Public Buildings, Property, and Works.
Amendments
1989--Subsec. (a). Pub. L. 101-235 struck out seventh sentence which
read as follows: ``The provisions of this section shall also apply to
insurance under subchapter IX-A of this chapter with respect to laborers
and mechanics employed in land development financed with the proceeds of
any mortgage insured under that subchapter.''
1970--Subsec. (a). Pub. L. 91-609 inserted reference to other
organization in sixth sentence.
1968--Subsec. (a). Pub. L. 90-448 inserted references to sections
1715z(j)(1) and 1715z-1 of this title, and made provisions of this
section applicable to the insurance of mortgages under section 1715z-7
of this title, permitted waiver of compliance in cases or classes of
cases where laborers or mechanics, not otherwise employed on the
project, voluntarily donate their services without compensation for the
purpose of lowering costs and savings are fully credited to the
nonprofit corporation or association, and required payment of overtime
to laborers or mechanics employed on facilities covered by a mortgage
insured under section 1715z-7 of this title.
1967--Subsecs. (a), (b). Pub. L. 90-19 substituted ``Secretary'' for
``Commissioner'' wherever appearing.
1966--Subsec. (a). Pub. L. 89-754 defined ``construction'' in third
sentence, made provisions of this section applicable to mortgage
described in subsec. (h)(1) covering property improved with residential
dwellings for use by more than eight families, provided for waiver of
requirement of compliance with respect to mortgages described in subsec.
(d)(3) or (d)(4) and subsec. (h)(1), made the provisions of this section
applicable to insurance of mortgage under subchapter IX-B of this
chapter, and provided for overtime compensation for work on group
practice facilities covered by mortgage insurance under such subchapter
IX-B.
1965--Subsec. (a). Pub. L. 89-117 substituted ``described in
subsection (d)(3) or (d)(4)'' for ``described in subsection (d)(3) in
the case of a cooperative or a limited profit mortgagor, or in
subsection (d)(4) thereof'', and applied provisions of this section to
insurance under subchapter IX-A of this chapter with respect to laborers
and mechanics employed in land development financed with the proceeds of
any mortgage insured under that subchapter.
1964--Subsec. (a). Pub. L. 88-560 inserted provision that this
section shall also apply to the insurance of any mortgage under section
1715y(d) of this title.
Pub. L. 88-349 inserted ``in accordance with the Davis-Bacon Act, as
amended''.
1961--Subsec. (a). Pub. L. 87-70 made section applicable to the
insurance of mortgages under section 1715x of this title and to
insurance under section 1715l of this title of mortgages described in
subsec. (d)(3) thereof in the case of a cooperative or a limited profit
mortgagor.
1959--Subsec. (a). Pub. L. 86-372 substituted ``or under section
1748b or 1748h-2 of this title'' for ``or under subchapter VIII of this
chapter'', and inserted provisions making this section applicable to the
insurance under section 1715 of this title of any mortgage described in
subsection (d)(4) thereof, and to the insurance of any mortgage under
section 1715v or 1715w of this title.
1954--Subsec. (a). Act Aug. 2, 1954, inserted sentence making
section applicable to insurance of any mortgage under section 1715k of
this title which covers property on which is located a dwelling or
dwellings designed principally for residential use for twelve or more
families.
1951--Subsec. (a). Act Sept. 1, 1951, inserted reference to section
1750g of this title after ``subchapter VIII of this chapter,''.
1950--Act Apr. 20, 1950, Sec. 122, substituted ``Commissioner'' for
``Administrator'' wherever appearing.
Subsec. (a). Act Apr. 20, 1950, Sec. 113, substituted ``or under
section 213 of this title, or under title VII pursuant to any
application filed subsequent to sixty days after the date of enactment
of the Housing Act of 1950, or under title VIII, a mortgage or
investment'' for ``or under subchapter VIII of this chapter''.
1949--Subsec. (a). Act Aug. 8, 1949, inserted ``, or under
subchapter VIII of this chapter'' after ``effective date of this
section''.
1942--Subsec. (a). Act May 26, 1942, inserted reference to section
1743 of this title.
Effective Date of 1964 Amendment
Section 4 of Pub. L. 88-349 provided that: ``The amendments made by
this Act [amending this section, section 276a of former Title 40, Public
Buildings, Property, and Works, and section 1114 of former Title 49,
Transportation] shall take effect on the ninetieth day after the date of
enactment of this Act [July 2, 1964], but shall not affect any contract
in existence on such effective date or made thereafter pursuant to
invitations for bids outstanding on such effective date and the rate of
payments specified by section 1(b)(2) of the Act of March 3, 1931, as
amended by this Act [now 40 U.S.C. 3141(2)(B)], shall, during a period
of two hundred and seventy days after such effective date, become
effective only in those cases and reasonable classes of cases as the
Secretary of Labor, acting as rapidly as practicable to make such rates
of payments fully effective, shall by rule of regulation provide.''
Enforcement of Labor Standards
Labor standards under provisions of this section to be prescribed
and enforced by Secretary of Labor, see Reorg. Plan No. 14 of 1950, eff.
May 24, 1950, 15 F.R. 3176, 64 Stat. 1267, set out in the Appendix to
Title 5, Government Organization and Employees.
Section Referred to in Other Sections
This section is referred to in sections 1715e, 1750b of this title.
