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.
Cooperative housing, also known as a housing cooperative, co-op, or housing companies, are membership-based cooperatives (or corporations) that own real estate. These usually consists of one or more residential buildings. Cooperative housing developments can be refinanced with a special variant of HUD 223(f) loans, the HUD 223(f) cooperative housing loan.