What is the Davis-Bacon Act?

Davis-Bacon Act Rules and the HUD 223(f) Program

Established under the 1931 Davis-Bacon Act, some public works projects must pay workers the local prevailing wages— not simply the minimum wage. Required by many HUD programs, it is overseen by HUD’s Office of Labor Relations Davis-Bacon compliance. Fortunately for borrowers, HUD 223(f) loans typically do not require that workers be paid Davis-Bacon wages for any rennovation or repair work.

What loan programs require Davis-Bacon Wages?

Specifically, HUD multifamily loan programs that require the construction or substantial rehabilitation of multifamily properties, such as HUD 221(d)(4) loans and certain HUD 232 loans, require that workers be paid Davis-Bacon wages. To learn what the Davis-Bacon wages in your area might be, check out this Davis-Bacon wage calculator.


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