
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 12USC1715c]

 
                       TITLE 12--BANKS AND BANKING
 
                      CHAPTER 13--NATIONAL HOUSING
 
                    SUBCHAPTER II--MORTGAGE INSURANCE
 
Sec. 1715c. Labor standards

    (a) The Secretary shall not insure under section 1713 or section 
1715a of this title or under section 1743 of this title pursuant to any 
application for insurance filed subsequent to the effective date of this 
section, or under section 1715e of this title, or under subchapter VII 
of this chapter 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 covers 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 commenced subsequent to such date, unless the principal contractor 
files a certificate or certificates (at such times, in course of 
construction or otherwise, as the Secretary may prescribe) certifying 
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 locality in which the work was 
performed for the corresponding classes of laborers and mechanics 
employed on construction of a similar character, as determined by the 
Secretary of Labor, in accordance with the Davis-Bacon Act, as amended 
[40 U.S.C. 276a et seq.], prior to the beginning of construction 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 
section 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 sentence of this subsection to mean rehabilitation) of any 
mortgage described in subsection (h)(1) or section 1715z(j)(1) of this 
title which covers property 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 donate their services without compensation 
    for the purpose of lowering their housing costs in a cooperative 
    housing project and the Secretary 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, voluntarily donate 
    their services without compensation, or other persons (not otherwise 
    employed at any time in the rehabilitation of the property) 
    voluntarily donate their services without compensation, and the 
    Secretary determines 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 
employed at any time on the project, voluntarily donate their services 
without full compensation for the purpose of lowering the costs of 
construction and the Secretary determines that any amounts thereby saved 
are fully credited to the nonprofit corporation, association, or other 
organization undertaking the construction. The provisions of this 
section shall also apply to the insurance of any mortgage under section 
1715y(d) of this title. The provisions of this section shall also apply 
to the insurance of any mortgage under section 1715z-7 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 employed at any time on the project, voluntarily donate their 
services without compensation for the purpose of lowering the costs of 
construction and the Secretary determines that any amounts thereby saved 
are fully credited to the nonprofit corporation, association, or other 
organization undertaking the construction; 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 of this 
chapter; and each laborer or mechanic employed on any facility covered 
by a mortgage insured under such subchapter 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 workday 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 determinations provided for in subsection (a) of this 
section.

(June 27, 1934, ch. 847, title II, Sec. 212, as added June 3, 1939, ch. 
175, Sec. 14, 53 Stat. 807; amended May 26, 1942, ch. 319, Sec. 10, 56 
Stat. 303; Aug. 8, 1949, ch. 403, Sec. 3, 63 Stat. 576; Apr. 20, 1950, 
ch. 94, title I, Secs. 113, 122, 64 Stat. 54, 59; Sept. 1, 1951, ch. 
378, title II, Sec. 203, 65 Stat. 303; Aug. 2, 1954, ch. 649, title I, 
Sec. 118, 68 Stat. 595; Pub. L. 86-372, title I, Sec. 110(f), title II, 
Sec. 201(b), title VII, Sec. 704(c), Sept. 23, 1959, 73 Stat. 661, 667, 
686; Pub. L. 87-70, title VI, Sec. 612(e), June 30, 1961, 75 Stat. 181; 
Pub. L. 88-349, Sec. 3, July 2, 1964, 78 Stat. 239; Pub. L. 88-560, 
title I, Sec. 119(b), Sept. 2, 1964, 78 Stat. 782; Pub. L. 89-117, title 
I, Sec. 102(c), title II, Sec. 201(b)(4), Aug. 10, 1965, 79 Stat. 454, 
465; Pub. L. 89-754, title III, Sec. 311, title V, Sec. 503, Nov. 3, 
1966, 80 Stat. 1270, 1277; Pub. L. 90-19, Sec. 1(a) (3), May 25, 1967, 
81 Stat. 17; Pub. L. 90-448, title I, Sec. 101(d), title II, 
Sec. 201(b)(1), title XV, Sec. 1502, Aug. 1, 1968, 82 Stat. 484, 501, 
600; Pub. L. 91-609, title I, Sec. 110(c), Dec. 31, 1970, 84 Stat. 1772; 
Pub. L. 101-235, title I, Sec. 133(d)(2), Dec. 15, 1989, 103 Stat. 
2027.)

                       References in Text

    Section 1715a of this title, referred to in subsec. (a), which 
related to additional housing insurance, was repealed 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.
    The Davis-Bacon Act, as amended, referred to in subsec. (a), is act 
Mar. 3, 1931, ch. 411, 46 Stat. 1494, as amended, which is classified 
generally to sections 276a to 276a-5 of Title 40, Public Buildings, 
Property, and Works. For complete classification of this Act to the 
Code, see Short Title note set out under section 276a of Title 40 and 
Tables.
    Subsections (d)(3), (d)(4), and (h)(1), referred to in subsec. (a), 
are references to such subsections in section 1715l of this title.


                               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 mechanics employed in land development financed with the proceeds of 
any mortgage insured under that subchapter.''
    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 compensation for the 
purpose of lowering costs and savings are fully credited to the 
nonprofit corporation or association, and required payment of overtime 
to laborers or mechanics employed on facilities covered by a mortgage 
insured under section 1715z-7 of this title.
    1967--Subsecs. (a), (b). Pub. L. 90-19 substituted ``Secretary'' for 
``Commissioner'' wherever appearing.
    1966--Subsec. (a). Pub. L. 89-754 defined ``construction'' in third 
sentence, made provisions of this section applicable to mortgage 
described in subsec. (h)(1) covering 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 insurance of mortgage under subchapter IX-B of this 
chapter, and provided for overtime compensation for work on group 
practice facilities covered by mortgage insurance under such subchapter 
IX-B.
    1965--Subsec. (a). Pub. L. 89-117 substituted ``described in 
subsection (d)(3) or (d)(4)'' for ``described in subsection (d)(3) in 
the case of a cooperative or a limited 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 applicable 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 subchapter 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 mortgage under section 1715k of 
this title which covers property on which is located a dwelling or 
dwellings designed principally for residential use for twelve or more 
families.
    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, Sec. 122, substituted ``Commissioner'' for 
``Administrator'' wherever appearing.
    Subsec. (a). Act Apr. 20, 1950, Sec. 113, substituted ``or under 
section 213 of this title, or under title VII pursuant 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.


                    Effective Date of 1964 Amendment

    For effective date of amendment by Pub. L. 88-349, see section 4 of 
Pub. L. 88-349, set out as a note under section 276a of Title 40, Public 
Buildings, Property, and Works.


                     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, Government Organization and Employees.

                  Section Referred to in Other Sections

    This section is referred to in sections 1715e, 1750b of this title.
