Application of Davis-Bacon must avoid unnecessary disruption to FHA-financed new construction and rehabilitation projects.

Overview: The manner in which wage rates under Davis-Bacon are applied is critical to the viability of FHA financing for new construction or substantial rehabilitation of multifamily and residential healthcare properties. Split-wage determinations for residential housing projects create significant administrative burden and complexity. In some cases, the resulting administrative burden and disruption can make a project infeasible after a developer has expended significant amounts of time, effort and funds. The Department of Labor should take action to eliminate unwarranted split-wage decisions and disruptive late-stage wage rate updates. 

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