
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC1437j]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                      CHAPTER 8--LOW-INCOME HOUSING
 
            SUBCHAPTER I--GENERAL PROGRAM OF ASSISTED HOUSING
 
Sec. 1437j. Labor standards and community service requirement


(a) Payment of wages prevailing in locality

    Any contract for loans, contributions, sale, or lease pursuant to 
this chapter shall contain a provision requiring that not less than the 
wages prevailing in the locality, as determined or adopted (subsequent 
to a determination under applicable State or local law) by the 
Secretary, shall be paid to all architects, technical engineers, 
draftsmen, and technicians employed in the development, and all 
maintenance laborers and mechanics employed in the operation, of the 
low-income housing project involved; and shall also contain a provision 
that not less than the wages prevailing in the locality, as 
predetermined by the Secretary of Labor pursuant to the Davis-Bacon Act 
[40 U.S.C. 276a et seq.], shall be paid to all laborers and mechanics 
employed in the development of the project involved (including a project 
with nine or more units assisted under section 1437f of this title, 
where the public housing agency or the Secretary and the builder or 
sponsor enter into agreement for such use before construction or 
rehabilitation is commenced), and the Secretary shall require 
certification as to compliance with the provisions of this section prior 
to making any payment under such contract.

(b) Exception for volunteers

    Subsection (a) of this section and the provisions relating to wages 
(pursuant to subsection (a) of this section) in any contract for loans, 
annual contributions, sale, or lease pursuant to this chapter, shall not 
apply to any individual that--
        (1) performs services for which the individual volunteered;
        (2)(A) does not receive compensation for such services; or
        (B) is paid expenses, reasonable benefits, or a nominal fee for 
    such services; and
        (3) is not otherwise employed at any time in the construction 
    work.

(c) Community service requirement

                           (1) In general

        Except as provided in paragraph (2) and notwithstanding any 
    other provision of law, each adult resident of a public housing 
    project shall--
            (A) contribute 8 hours per month of community service (not 
        including political activities) within the community in which 
        that adult resides; or
            (B) participate in an economic self-sufficiency program (as 
        that term is defined in subsection (g) of this section) for 8 
        hours per month.

                           (2) Exemptions

        The Secretary shall provide an exemption from the applicability 
    of paragraph (1) for any individual who--
            (A) is 62 years of age or older;
            (B) is a blind or disabled individual, as defined under 
        section 216(i)(1) or 1614 of the Social Security Act (42 U.S.C. 
        416(i)(1); 1382c), and who is unable to comply with this 
        section, or is a primary caretaker of such individual;
            (C) is engaged in a work activity (as such term is defined 
        in section 407(d) of the Social Security Act (42 U.S.C. 607(d)), 
        as in effect on and after July 1, 1997)); \1\
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    \1\ So in original. Probably should be only one closing parenthesis.
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            (D) meets the requirements for being exempted from having to 
        engage in a work activity under the State program funded under 
        part A of title IV of the Social Security Act (42 U.S.C. 601 et 
        seq.) or under any other welfare program of the State in which 
        the public housing agency is located, including a State-
        administered welfare-to-work program; or
            (E) is in a family receiving assistance under a State 
        program funded under part A of title IV of the Social Security 
        Act (42 U.S.C. 601 et seq.) or under any other welfare program 
        of the State in which the public housing agency is located, 
        including a State-administered welfare-to-work program, and has 
        not been found by the State or other administering entity to be 
        in noncompliance with such program.

                      (3) Annual determinations

        (A) Requirement

            For each public housing resident subject to the requirement 
        under paragraph (1), the public housing agency shall, 30 days 
        before the expiration of each lease term of the resident under 
        section 1437d(l)(1) of this title, review and determine the 
        compliance of the resident with the requirement under paragraph 
        (1) of this subsection.

        (B) Due process

            Such determinations shall be made in accordance with the 
        principles of due process and on a nondiscriminatory basis.

        (C) Noncompliance

            If an agency determines that a resident subject to the 
        requirement under paragraph (1) has not complied with the 
        requirement, the agency--
                (i) shall notify the resident--
                    (I) of such noncompliance;
                    (II) that the determination of noncompliance is 
                subject to the administrative grievance procedure under 
                subsection (k); \2\ and
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    \2\ See References in Text note below.
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                    (III) that, unless the resident enters into an 
                agreement under clause (ii) of this subparagraph, the 
                resident's lease will not be renewed; and

                (ii) may not renew or extend the resident's lease upon 
            expiration of the lease term and shall take such action as 
            is necessary to terminate the tenancy of the household, 
            unless the agency enters into an agreement, before the 
            expiration of the lease term, with the resident providing 
            for the resident to cure any noncompliance with the 
            requirement under paragraph (1), by participating in an 
            economic self-sufficiency program for or contributing to 
            community service as many additional hours as the resident 
            needs to comply in the aggregate with such requirement over 
            the 12-month term of the lease.

          (4) Ineligibility for occupancy for noncompliance

        A public housing agency may not renew or extend any lease, or 
    provide any new lease, for a dwelling unit in public housing for any 
    household that includes an adult member who was subject to the 
    requirement under paragraph (1) and failed to comply with the 
    requirement.

                        (5) Inclusion in plan

        Each public housing agency shall include in its public housing 
    agency plan a detailed description of the manner in which the agency 
    intends to implement and administer this subsection.

                       (6) Geographic location

        The requirement under paragraph (1) may include community 
    service or participation in an economic self-sufficiency program 
    performed at a location not owned by the public housing agency.

          (7) Prohibition against replacement of employees

        In carrying out this subsection, a public housing agency may 
    not--
            (A) substitute community service or participation in an 
        economic self-sufficiency program, as described in paragraph 
        (1), for work performed by a public housing employee; or
            (B) supplant a job at any location at which community work 
        requirements are fulfilled.

                    (8) Third-party coordinating

        A public housing agency may administer the community service 
    requirement under this subsection directly, through a resident 
    organization, or through a contractor having experience in 
    administering volunteer-based community service programs within the 
    service area of the public housing agency. The Secretary may 
    establish qualifications for such organizations and contractors.

(d) Treatment of income changes resulting from welfare program 
        requirements

                         (1) Covered family

        For purposes of this subsection, the term ``covered family'' 
    means a family that (A) receives benefits for welfare or public 
    assistance from a State or other public agency under a program for 
    which the Federal, State, or local law relating to the program 
    requires, as a condition of eligibility for assistance under the 
    program, participation of a member of the family in an economic 
    self-sufficiency program, and (B) resides in a public housing 
    dwelling unit or is provided tenant-based assistance under section 
    1437f of this title.

            (2) Decreases in income for failure to comply

        (A) In general

            Notwithstanding the provisions of section 1437a(a) of this 
        title (relating to family rental contributions) or paragraph (4) 
        or (5) of section 1437a(b) of this title (relating to definition 
        of income and adjusted income), if the welfare or public 
        assistance benefits of a covered family are reduced under a 
        Federal, State, or local law regarding such an assistance 
        program because of any failure of any member of the family to 
        comply with the conditions under the assistance program 
        requiring participation in an economic self-sufficiency program 
        or imposing a work activities requirement, the amount required 
        to be paid by the family as a monthly contribution toward rent 
        may not be decreased, during the period of the reduction, as a 
        result of any decrease in the income of the family (to the 
        extent that the decrease in income is a result of the benefits 
        reduction).

        (B) No reduction based on time limit for assistance

            For purposes of this paragraph, a reduction in benefits as a 
        result of the expiration of a lifetime time limit for a family 
        receiving welfare or public assistance benefits shall not be 
        considered to be a failure to comply with the conditions under 
        the assistance program requiring participation in an economic 
        self-sufficiency program or imposing a work activities 
        requirement. This paragraph shall apply beginning on October 21, 
        1998.

                         (3) Effect of fraud

        Notwithstanding the provisions of section 1437a(a) of this title 
    (relating to family rental contributions) or paragraph (4) or (5) of 
    section 1437a(b) of this title (relating to definition of income and 
    adjusted income), if the welfare or public assistance benefits of a 
    covered family are reduced because of an act of fraud by a member of 
    the family under the law or program, the amount required to be paid 
    by the covered family as a monthly contribution toward rent may not 
    be decreased, during the period of the reduction, as a result of any 
    decrease in the income of the family (to the extent that the 
    decrease in income is a result of the benefits reduction). This 
    paragraph shall apply beginning on October 21, 1998.

                             (4) Notice

        Paragraphs (2) and (3) shall not apply to any covered family 
    before the public housing agency providing assistance under this 
    chapter on behalf of the family obtains written notification from 
    the relevant welfare or public assistance agency specifying that the 
    family's benefits have been reduced because of noncompliance with 
    economic self-sufficiency program or work activities requirements or 
    fraud, and the level of such reduction.

                        (5) Occupancy rights

        This subsection may not be construed to authorize any public 
    housing agency to establish any time limit on tenancy in a public 
    housing dwelling unit or on receipt of tenant-based assistance under 
    section 1437f of this title.

                             (6) Review

        Any covered family residing in public housing that is affected 
    by the operation of this subsection shall have the right to review 
    the determination under this subsection through the administrative 
    grievance procedure established pursuant to section 1437d(k) of this 
    title for the public housing agency.

      (7) Cooperation agreements for economic self-sufficiency 
                                 activities

        (A) Requirement

            A public housing agency providing public housing dwelling 
        units or tenant-based assistance under section 1437f of this 
        title for covered families shall make its best efforts to enter 
        into such cooperation agreements, with State, local, and other 
        agencies providing assistance to covered families under welfare 
        or public assistance programs, as may be necessary, to provide 
        for such agencies to transfer information to facilitate 
        administration of subsection (c) of this section and paragraphs 
        (2), (3), and (4) of this subsection and other information 
        regarding rents, income, and assistance that may assist a public 
        housing agency or welfare or public assistance agency in 
        carrying out its functions.

        (B) Contents

            A public housing agency shall seek to include in a 
        cooperation agreement under this paragraph requirements and 
        provisions designed to target assistance under welfare and 
        public assistance programs to families residing in public 
        housing projects and families receiving tenant-based assistance 
        under section 1437f of this title, which may include providing 
        for economic self-sufficiency services within such housing, 
        providing for services designed to meet the unique employment-
        related needs of residents of such housing and recipients of 
        such assistance, providing for placement of workfare positions 
        on-site in such housing, and such other elements as may be 
        appropriate.

        (C) Confidentiality

            This paragraph may not be construed to authorize any release 
        of information prohibited by, or in contravention of, any other 
        provision of Federal, State, or local law.

(e) Lease provisions

    A public housing agency shall incorporate into leases under section 
1437d(l) of this title and into agreements for the provision of tenant-
based assistance under section 1437f of this title, provisions 
incorporating the conditions under subsection (d) of this section.

(f) Treatment of income

    Notwithstanding any other provision of this section, in determining 
the income of a family who resides in public housing or receives tenant-
based assistance under section 1437f of this title, a public housing 
agency shall consider any decrease in the income of a family that 
results from the reduction of any welfare or public assistance benefits 
received by the family under any Federal, State, or local law regarding 
a program for such assistance if the family (or a member thereof, as 
applicable) has complied with the conditions for receiving such 
assistance and is unable to obtain employment notwithstanding such 
compliance.

(g) Definition

    For purposes of this section, the term ``economic self-sufficiency 
program'' means any program designed to encourage, assist, train, or 
facilitate the economic independence of participants and their families 
or to provide work for participants, including programs for job 
training, employment counseling, work placement, basic skills training, 
education, workfare, financial or household management, apprenticeship, 
or other activities as the Secretary may provide.

(Sept. 1, 1937, ch. 896, title I, Sec. 12, as added Pub. L. 93-383, 
title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 667; amended Pub. L. 97-
35, title III, Sec. 322(c), Aug. 13, 1981, 95 Stat. 402; Pub. L. 100-
242, title I, Sec. 112(b)(5), Feb. 5, 1988, 101 Stat. 1824; renumbered 
title I, Pub. L. 100-358, Sec. 5, June 29, 1988, 102 Stat. 681; Pub. L. 
101-625, title V, Sec. 572(2), title IX, Sec. 955(b), Nov. 28, 1990, 104 
Stat. 4236, 4421; Pub. L. 105-276, title V, Sec. 512(a), Oct. 21, 1998, 
112 Stat. 2539.)

                       References in Text

    The Davis-Bacon Act, 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.
    The Social Security Act, referred to in subsec. (c)(2)(D), (E), is 
act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Part A of title IV 
of the Act is classified generally to part A (Sec. 601 et seq.) of 
subchapter IV of chapter 7 of this title. For complete classification of 
this Act to the Code, see section 1305 of this title and Tables.
    Subsection (k), referred to in subsec. (c)(3)(C)(i)(II), probably 
means section 1437d(k) of this title, which relates to administrative 
grievance procedures. This section does not contain a subsec. (k).


                            Prior Provisions

    A prior section 12 of act Sept. 1, 1937, ch. 896, 50 Stat. 894, as 
amended, authorized the disposal of low-rent housing projects 
transferred to or acquired by the Authority and was classified to 
section 1412 of this title, prior to the general revision of this 
chapter by Pub. L. 93-383.


                               Amendments

    1998--Pub. L. 105-276, Sec. 512(a)(1), inserted ``and community 
service requirement'' after ``Labor standards'' in section catchline.
    Subsecs. (c) to (g). Pub. L. 105-276, Sec. 512(a)(2), added subsecs. 
(c) to (g).
    1990--Pub. L. 101-625, Sec. 955(b), designated existing provisions 
as subsec. (a) and added subsec. (b).
    Pub. L. 101-625, Sec. 572(2), substituted ``low-income housing'' for 
``lower income housing''.
    1988--Pub. L. 100-242 struck out ``annual'' before 
``contributions''.
    1981--Pub. L. 97-35 substituted reference to lower income for 
reference to low-income.


                    Effective Date of 1998 Amendment

    Amendment by title V of Pub. L. 105-276 effective and applicable 
beginning upon Oct. 1, 1999, except as otherwise provided, with 
provision that Secretary may implement amendment before such date, 
except to extent that such amendment provides otherwise, and with 
savings provision, see section 503 of Pub. L. 105-276, set out as a note 
under section 1437 of this title.


                    Effective Date of 1990 Amendment

    Section 955(d) of Pub. L. 101-625 provided that: ``The amendments 
made by this section [amending this section, section 5310 of this title, 
and section 1701q of Title 12, Banks and Banking] shall apply to any 
volunteer services provided before, on, or after the date of the 
enactment of this Act [Nov. 28, 1990], except that such amendments may 
not be construed to require the repayment of any wages paid before the 
date of the enactment of this Act for services provided before such 
date.''


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section 371 
of Pub. L. 97-35, set out as an Effective Date note under section 3701 
of Title 12, Banks and Banking.

                  Section Referred to in Other Sections

    This section is referred to in sections 1437c-1, 1437d, 1437g of 
this title.
