12 U.S.C. § 1715c — Labor standards

Page 582 TITLE 12—BANKS AND BANKING § 1715a count or accounts, as the Commissioner shall deter- mine’’ for ‘‘shall be charged as a general expense of the Fund, the Housing Fund, and the Defense Housing In- surance Fund in such proportion as the Commissioner shall determine’’. 1950—Act Apr. 20, 1950, substituted ‘‘Commissioner’’ for ‘‘Administrator’’ wherever appearing. 1941—Act Mar. 28, 1941, substituted ‘‘Fund, the Hous- ing Fund, and the Defense Housing Insurance Fund’’ for ‘‘Fund and the Housing Fund’’. 1938—Act Feb. 3, 1938, inserted ‘‘and the Housing Fund in such proportion as the Administrator shall de- termine’’ after ‘‘Fund’’. § 1715a. Repealed. June 3, 1939, ch. 175, § 13, 53 Stat. 807 Section, act June 27, 1934, ch. 847, title II, § 210, as added by act Feb. 3, 1938, ch. 13, § 3, 52 Stat. 22, related to additional housing insurance. Statutory Notes and Related Subsidiaries APPLICATIONS PRIOR TO REPEAL Act June 3, 1939, ch. 175, § 13, 53 Stat. 807, which re- pealed this section, also provided: ‘‘That the Adminis- trator is authorized to insure under said section [this section] any mortgage for the insurance of which an ap- plication has been filed with him prior to the effective date of this act [June 3, 1939].’’ § 1715b. Rules and regulations The Secretary is authorized and directed to make such rules and regulations as may be nec- essary to carry out the provisions of this sub- chapter. (June 27, 1934, ch. 847, title II, § 211, as added Feb. 3, 1938, ch. 13, § 3, 52 Stat. 23; amended Apr. 20, 1950, ch. 94, title I, § 122, 64 Stat. 59; Pub. L. 90–19, § 1(a)(3), May 25, 1967, 81 Stat. 17.) Editorial Notes AMENDMENTS 1967—Pub. L. 90–19 substituted ‘‘Secretary’’ for ‘‘Com- missioner’’. 1950—Act Apr. 20, 1950, substituted ‘‘Commissioner’’ for ‘‘Administrator’’. Statutory Notes and Related Subsidiaries REGULATIONS Pub. L. 98–479, title I, § 104(f), Oct. 17, 1984, 98 Stat. 2226, required Secretary of Housing and Urban Develop- ment, not later than Oct. 31, 1984, to issue regulations to carry out amendments made to section 1715z–7 of this title by section 436 of Housing and Urban-Rural Re- covery Act of 1983, Pub. L. 98–181, title I [titles I–V]. § 1715c. Labor standards (a) The Secretary shall not insure under sec- tion 1713 or section 1715a of this title or under section 1743 of this title pursuant to any applica- tion for insurance filed subsequent to the effec- tive date of this section, or under section 1715e of this title, or under subchapter VII 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 cov- ers 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 com- menced subsequent to such date, unless the prin- cipal contractor files a certificate or certificates (at such times, in course of construction or oth- erwise, as the Secretary may prescribe) certi- fying 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 local- ity in which the work was performed for the cor- responding classes of laborers and mechanics employed on construction of a similar char- acter, as determined by the Secretary of Labor, in accordance with sections 3141–3144, 3146, and 3147 of title 40, prior to the beginning of con- struction 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 sec- tion 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 sen- tence of this subsection to mean rehabilitation) of any mortgage described in subsection (h)(1) or section 1715z(j)(1) of this title which covers prop- erty 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 do- nate their services without compensation for the purpose of lowering their housing costs in a cooperative housing project and the Sec- retary 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, volun- tarily donate their services without compensa- tion, or other persons (not otherwise employed at any time in the rehabilitation of the prop- erty) voluntarily donate their services with- out compensation, and the Secretary deter- mines 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 em- ployed at any time on the project, voluntarily donate their services without full compensation for the purpose of lowering the costs of con- struction and the Secretary determines that any amounts thereby saved are fully credited to the nonprofit corporation, association, or other or- ganization undertaking the construction. The provisions of this section shall also apply to the insurance of any mortgage under section Page 583 TITLE 12—BANKS AND BANKING § 1715c 1715y(d) of this title. The provisions of this sec- tion shall also apply to the insurance of any mortgage under section 1715z–7 of this title, ex- cept that compliance with such provisions may be waived by the Secretary in cases or classes of cases where laborers or mechanics, not other- wise employed at any time on the project, vol- untarily donate their services without com- pensation for the purpose of lowering the costs of construction and the Secretary determines that any amounts thereby saved are fully cred- ited to the nonprofit corporation, association, or other organization undertaking the construc- tion; 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; and each laborer or mechanic employed on any facility covered by a mortgage insured under such sub- chapter 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 work- day 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 determina- tions provided for in subsection (a). (June 27, 1934, ch. 847, title II, § 212, as added June 3, 1939, ch. 175, § 14, 53 Stat. 807; amended May 26, 1942, ch. 319, § 10, 56 Stat. 303; Aug. 8, 1949, ch. 403, § 3, 63 Stat. 576; Apr. 20, 1950, ch. 94, title I, §§ 113, 122, 64 Stat. 54, 59; Sept. 1, 1951, ch. 378, title II, § 203, 65 Stat. 303; Aug. 2, 1954, ch. 649, title I, § 118, 68 Stat. 595; Pub. L. 86–372, title I, § 110(f), title II, § 201(b), title VII, § 704(c), Sept. 23, 1959, 73 Stat. 661, 667, 686; Pub. L. 87–70, title VI, § 612(e), June 30, 1961, 75 Stat. 181; Pub. L. 88–349, § 3, July 2, 1964, 78 Stat. 239; Pub. L. 88–560, title I, § 119(b), Sept. 2, 1964, 78 Stat. 782; Pub. L. 89–117, title I, § 102(c), title II, § 201(b)(4), Aug. 10, 1965, 79 Stat. 454, 465; Pub. L. 89–754, title III, § 311, title V, § 503, Nov. 3, 1966, 80 Stat. 1270, 1277; Pub. L. 90–19, § 1(a) (3), May 25, 1967, 81 Stat. 17; Pub. L. 90–448, title I, § 101(d), title II, § 201(b)(1), title XV, § 1502, Aug. 1, 1968, 82 Stat. 484, 501, 600; Pub. L. 91–609, title I, § 110(c), Dec. 31, 1970, 84 Stat. 1772; Pub. L. 101–235, title I, § 133(d)(2), Dec. 15, 1989, 103 Stat. 2027.) Editorial Notes REFERENCES IN TEXT Section 1715a of this title, referred to in subsec. (a), which related to additional housing insurance, was re- pealed 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 sub- sec. (a), are references to such subsections in section 1715l of this title. CODIFICATION ‘‘Sections 3141–3144, 3146, and 3147 of title 40’’ sub- stituted in subsec. (a) for ‘‘the Davis-Bacon Act, as amended’’ on authority of Pub. L. 107–217, § 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 me- chanics employed in land development financed with the proceeds of any mortgage insured under that sub- chapter.’’ 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 com- pensation for the purpose of lowering costs and savings are fully credited to the nonprofit corporation or asso- ciation, and required payment of overtime to laborers or mechanics employed on facilities covered by a mort- gage insured under section 1715z–7 of this title. 1967—Subsecs. (a), (b). Pub. L. 90–19 substituted ‘‘Sec- retary’’ for ‘‘Commissioner’’ wherever appearing. 1966—Subsec. (a). Pub. L. 89–754 defined ‘‘construc- tion’’ in third sentence, made provisions of this section applicable to mortgage described in subsec. (h)(1) cov- ering 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 insur- ance of mortgage under subchapter IX–B of this chap- ter, and provided for overtime compensation for work on group practice facilities covered by mortgage insur- ance under such subchapter IX–B. 1965—Subsec. (a). Pub. L. 89–117 substituted ‘‘de- scribed in subsection (d)(3) or (d)(4)’’ for ‘‘described in subsection (d)(3) in the case of a cooperative or a lim- ited 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 applica- ble 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 sub- chapter 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 mort- gage under section 1715k of this title which covers prop- erty on which is located a dwelling or dwellings de- signed principally for residential use for twelve or more families. Page 584 TITLE 12—BANKS AND BANKING § 1715d 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, § 122, substituted ‘‘Commis- sioner’’ for ‘‘Administrator’’ wherever appearing. Subsec. (a). Act Apr. 20, 1950, § 113, substituted ‘‘or under section 213 of this title, or under title VII pursu- ant 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. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1964 AMENDMENT Pub. L. 88–349, § 4, July 2, 1964, 78 Stat. 240, 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 pur- suant to invitations for bids outstanding on such effec- tive 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, Govern- ment Organization and Employees. § 1715d. Insurance of mortgages on property in Alaska, Guam, Hawaii, and Virgin Islands If the Secretary of Housing and Urban Devel- opment finds that, because of higher costs pre- vailing in Alaska, Guam, Hawaii, or the Virgin Islands, it is not feasible to construct dwellings or manufactured home courts or parks on prop- erty located in Alaska, Guam, Hawaii, or the Virgin Islands without sacrifice of sound stand- ards of construction, design, or livability, with- in the limitations as to maximum or maxima mortgage amounts provided in this chapter, the Secretary may, by regulations or otherwise, pre- scribe, with respect to dollar amount, a higher maximum or maxima for the principal obliga- tion of mortgages insured under this chapter covering property located in Alaska, Guam, Ha- waii, or the Virgin Islands in such amounts as he shall find necessary to compensate for such higher costs but not to exceed, in any event, the maximum or maxima otherwise applicable (in- cluding increased mortgage amounts in geo- graphical areas where cost levels so require) by more than one-half thereof. No mortgage with respect to a project or property in Alaska, Guam, Hawaii, or the Virgin Islands shall be ac- cepted for insurance under this chapter unless the Secretary finds that the project or property is an acceptable risk giving consideration to the acute housing shortage in Alaska, Guam, Ha- waii, or the Virgin Islands: Provided, That any such mortgage may be insured or accepted for insurance without regard to any requirement in any other section of this chapter that the Sec- retary find the project or property to be eco- nomically sound or an acceptable risk. Notwith- standing any of the provisions of this chapter or any other law, the Alaska Housing Authority or the Government of Guam, the Virgin Islands, or Hawaii or any agency or instrumentality there- of shall be eligible as mortgagor or mortgagee, as the case may be, for any of the purposes of mortgage insurance under the provisions of this chapter. Upon application by the mortgagee (1) where the mortgagor is regulated or restricted pursuant to the last sentence of this section or (2) where the Alaska Housing Authority or the Government of Guam, the Virgin Islands, or Ha- waii or any agency or instrumentality thereof is the mortgagor or mortgagee, for the insurance of a mortgage under any provisions of this chap- ter, the Secretary is authorized to insure the mortgage (including advances thereon where otherwise authorized), and to make commit- ments for the insuring of any such mortgages prior to the date of their execution or disburse- ment thereon, under such provision (and this section) without regard to any requirement that the mortgagor shall have paid a prescribed amount on account of such property. Without limiting the authority of the Secretary under any other provision of law, the Secretary is au- thorized, with respect to any mortgagor in such case (except where the Alaska Housing Author- ity is the mortgagor or mortgagee), to require the mortgagor to be regulated or restricted as to rents or sales, charges, capital structure, rate of return, and methods of operation to such an ex- tent and in such manner as the Secretary deter- mines advisable to provide reasonable rentals and sales prices and a reasonable return on the investment. (June 27, 1934, ch. 847, title II, § 214, as added Apr. 23, 1949, ch. 89, § 2(a), 63 Stat. 57; amended Sept. 1, 1951, ch. 378, title VI, § 606, 65 Stat. 315; July 14, 1952, ch. 723, § 10(a)(3), 66 Stat. 603; June 30, 1953, ch. 170, § 25(a), (c), 67 Stat. 128; Pub. L. 86–70, § 10(c), June 25, 1959, 73 Stat. 142; Pub. L. 86–372, title I, § 106, Sept. 23, 1959, 73 Stat. 657; Pub. L. 90–19, § 1(a)(2), (3), May 25, 1967, 81 Stat. 17; Pub. L. 91–152, title IV, § 418(e), Dec. 24, 1969, 83 Stat. 402; Pub. L. 96–399, title III, § 308(c)(1), Oct. 8, 1980, 94 Stat. 1640; Pub. L. 98–479, title II, § 204(a)(4), Oct. 17, 1984, 98 Stat. 2232; Pub. L. 100–242, title IV, § 406(b)(7), Feb. 5, 1988, 101 Stat. 1901; Pub. L. 101–625, title III, § 333, Nov. 28, 1990, 104 Stat. 4141.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning act June 27, 1934, ch. 847, 48 Stat. 1246, which is classified principally to this chapter (§ 1701 et seq.). For complete classification of this Act to the Code, see Tables. CODIFICATION Section is comprised of section 214 of act June 27, 1934, as added by section 2(a) of act Apr. 23, 1949, which insofar as Alaska, Hawaii, and Guam individually are