Do Davis Bacon Wage Requirements Apply to HUD 223(f) Loans?

Davis Bacon Wage Requirements and HUD 223(f) Loans

Davis Bacon wage requirements mandate that workers on projects that use federal programs, such as HUD multifamily mortgage insurance, must be paid the prevailing wage for that area. These rules apply to certain HUD multifamily construction loans, such as HUD 221(d)(4) loans, but do not typically apply to HUD 223(f) loans. This is because HUD 223(f) financing does not allow for the construction or substantial rehabilitation of multifamily properties. It is only intended for acquisitions and refinances with minor property repairs. 

While typical HUD 223(f) loans don't require that borrowers follow Davis Bacon regulations, Rental Assistance Demonstration (RAD) public housing conversions (RAD I) transactions are subject to Davis-Bacon, even if the borrower is using a HUD 223(f) loan. 


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