[Code of Federal Regulations] [Title 24, Volume 4] [Revised as of April 1, 2006] From the U.S. Government Printing Office via GPO Access [CITE: 24CFR965.101] [Page 467-469] TITLE 24--HOUSING AND URBAN DEVELOPMENT CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PART 965_PHA-OWNED OR LEASED PROJECTS_GENERAL PROVISIONS--Table of Contents Subpart A_Preemption of State Prevailing Wage Requirements Sec. 965.101 Preemption of State prevailing wage requirements. Subpart A_Preemption of State Prevailing Wage Requirements Sec. 965.101 Preemption of State prevailing wage requirements. Subpart B_Required Insurance Coverage 965.201 Purpose and applicability. 965.205 Qualified PHA-owned insurance entity. 965.215 Lead-based paint liability insurance coverage. Subpart C_Energy Audits and Energy Conservation Measures 965.301 Purpose and applicability. 965.302 Requirements for energy audits. 965.303 [Reserved]. 965.304 Order of funding. 965.305 Funding. 965.306 Energy conservation equipment and practices. 965.307 Compliance schedule. 965.308 Energy performance contracts. Subpart D_Individual Metering of Utilities for Existing PHA-Owned Projects 965.401 Individually metered utilities. 965.402 Benefit/cost analysis. 965.403 Funding. 965.404 Order of conversion. 965.405 Actions affecting residents. 965.406 Benefit/cost analysis for similar projects. 965.407 Reevaluations of mastermeter systems. Subpart E_Resident Allowances for Utilities 965.501 Applicability. 965.502 Establishment of utility allowances by PHAs. 965.503 Categories for establishment of allowances. 965.504 Period for which allowances are established. 965.505 Standards for allowances for utilities. 965.506 Surcharges for excess consumption of PHA-furnished utilities. 965.507 Review and revision of allowances. 965.508 Individual relief. Subpart F_Physical Condition Standards and Physical Inspection Requirements 965.601 Physical condition standards; physical inspection requirements. Subpart G [Reserved] Subpart H_Lead-Based Paint Poisoning Prevention 965.701 Lead-based paint poisoning prevention. Subpart I_Fire Safety 965.800 Applicability. 965.805 Smoke detectors. Authority: 42 U.S.C. 1437, 1437a, 1437d, 1437g, and 3535(d). Subpart H is also issued under 42 U.S.C. 4821-4846. Source: 41 FR 20276, May 17, 1976, unless otherwise noted. Redesignated at 49 FR 6714, Feb. 23, 1984. (a) A prevailing wage rate including basic hourly rate and any fringe benefits) determined under State law shall be inapplicable to a contract or PHA-performed work item for the development, maintenance, and modernization of a project whenever: (1) The contract or work item: (i) Is otherwise subject to State law requiring the payment of wage rates determined by a State or local government or agency to be prevailing and (ii) is assisted with funds for low-income public housing under the U.S. Housing Act of 1937, as amended; and (2) The wage rate determined under State law to be prevailing with respect [[Page 468]] to an employee in any trade or position employed in the development, maintenance, and modernization of a project exceeds whichever of the following Federal wage rates is applicable: (i) The wage rate determined by the Secretary of Labor pursuant to the Davis-Bacon Act (40 U.S.C. 276a et seq.) to be prevailing in the locality with respect to such trade; (ii) An applicable apprentice wage rate based thereon specified in an apprenticeship program registered with the Department of Labor or a DOL-recognized State Apprenticeship Agency; (iii) An applicable trainee wage rate based thereon specified in a DOL-certified trainee program; or (iv) The wage rate determined by the Secretary of HUD to be prevailing in the locality with respect to such trade or position. (v) For the purpose of ascertaining whether a wage rate determined under State law for a trade or position exceeds the Federal wage rate: (A) Where a rate determined by the Secretary of Labor or an apprentice or trainee wage rate based thereon is applicable, the total wage rate determined under State law, including fringe benefits (if any) and basic hourly rate, shall be compared to the total wage rate determined by the Secretary of Labor or apprentice or trainee wage rate; and (B) where a rate determined by the Secretary of HUD is applicable, any fringe benefits determined under State law shall be excluded from the comparison with the rate determined by the Secretary of HUD. (b) Whenever paragraph (a)(1) of this section is applicable: (1) Any solicitation of bids or proposals issued by the PHA and any contract executed by the PHA for development, maintenance, and modernization of the project shall include a statement that any prevailing wage rate (including basic hourly rate and any fringe benefits) determined under State law to be prevailing with respect to an employee in any trade or position employed under the contract is inapplicable to the contract and shall not be enforced against the contractor or any subcontractor with respect to employees engaged under the contract whenever either of the following occurs: (i) Such nonfederal prevailing wage rate exceeds: (A) The applicable wage rate determined by the Secretary of Labor pursuant to the Davis- Bacon Act (40 U.S.C. 276a et seq.) to be prevailing in the locality with respect to such trade; (B) an applicable apprentice wage rate based thereon specified in an apprenticeship program registered with the Department of Labor or a DOL-recognized State Apprenticeship Agency or (C) an applicable trainee wage rate based thereon specified in a DOL- certified trainee program; or (ii) Such nonfederal prevailing wage rate, exclusive of any fringe benefits, exceeds the applicable wage rate determined by the Secretary of HUD to be prevailing in the locality with respect to such trade or position. Failure to include this statement may constitute grounds for requiring resolicitation of the bid or proposal; (2) The PHA itself shall not be required to pay the basic hourly rate or any fringe benefits comprising a prevailing wage rate determined under State law and described in paragraph (a)(2) of this section to any of its own employees who may be engaged in the work item for development, maintenance, and modernization of the project; and (3) Neither the basic hourly rate nor any fringe benefits comprising a prevailing wage rate determined under State law and described in paragraph (a)(2) shall be enforced against the PHA or any of its contractors or subcontractors with respect to employees engaged in the contract or PHA-performed work item for development, maintenance, and modernization of the project. (c) Nothing in this section shall affect the applicability of any wage rate established in a collective bargaining agreement with a PHA or its contractors or subcontractors where such wage rate equals or exceeds the applicable Federal wage rate referred to in paragraph (a)(2) of this section, nor does this section impose a ceiling on wage rates a PHA or its contractors or subcontractors may choose to pay independent of State law. (d) The provisions of this section shall be applicable to work performed under any prime contract entered into as a result of a solicitation of bids or [[Page 469]] proposals issued on or after October 6, 1988 and to any work performed by employees of a PHA on or after October 6, 1988, but not to work or contracts administered by Indian Housing Authorities (for which, see part 905 of this chapter). [53 FR 30217, Aug. 10, 1988, as amended at 57 FR 28358, June 24, 1992; 61 FR 8736, Mar. 5, 1996]