Title 12Banks and BankingRelease 119-73

§1715c Labor standards

Title 12 › Chapter CHAPTER 13— - NATIONAL HOUSING › Subchapter SUBCHAPTER II— - MORTGAGE INSURANCE › § 1715c

Last updated Apr 6, 2026|Official source

Summary

The Secretary must not insure a mortgage or investment that covers property where a new dwelling or housing project is to be built after the law took effect, unless the main contractor files certificates (when the Secretary requires) saying the workers were paid at least the local prevailing wages as set by the Secretary of Labor under the federal wage laws. This rule applies to insurance under several parts of this title, including applications filed after sixty days after April 20, 1950, loans for residential buildings for twelve or more families, and certain rehabilitation mortgages for buildings with more than eight families. The Secretary may waive the wage-certificate rule for cases where people voluntarily donate labor without pay to lower housing costs in a cooperative project, or where prospective owners or other volunteers donate labor for nonprofit rehabilitation, if the Secretary finds the savings are fully credited to the cooperative or nonprofit. The Secretary may make rules needed to carry out these requirements. Money is authorized to pay the Department of Labor’s expenses for making the wage determinations for the remainder of the fiscal year ending June 30, 1939, and for each fiscal year after.

Full Legal Text

Title 12, §1715c

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(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 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 section 3141–3144, 3146, and 3147 of title 40, 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.
(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).

Legislative History

Notes & Related Subsidiaries

Editorial Notes

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. Subsections (d)(3), (d)(4), and (h)(1), referred to in subsec. (a), are references to such subsections in section 1715l of this title. Codification “section 3141–3144, 3146, and 3147 of title 40” substituted in subsec. (a) for “the Davis-Bacon Act, as amended” on authority of Pub. L. 107–217, § 5(c), Aug. 21, 2002, 116 Stat. 1303, the first section of which enacted Title 40, Public Buildings, Property, and Works.

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 section 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, § 122, substituted “Commissioner” for “Administrator” wherever appearing. Subsec. (a). Act Apr. 20, 1950, § 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.

Statutory Notes and Related Subsidiaries

Effective Date

of 1964 Amendment Pub. L. 88–349, § 4, July 2, 1964, 78 Stat. 240, provided that: “The

Amendments

made by this Act [amending this section, section 276a of former Title 40, Public Buildings, Property, and Works, and section 1114 of former Title 49, Transportation] shall take effect on the ninetieth day after the date of enactment of this Act [July 2, 1964], but shall not affect any contract in existence on such

Effective Date

or made thereafter pursuant to invitations for bids outstanding on such

Effective Date

and the rate of payments specified by section 1(b)(2) of the Act of March 3, 1931, as amended by this Act [now 40 U.S.C. 3141(2)(B)], shall, during a period of two hundred and seventy days after such

Effective Date

, become effective only in those cases and reasonable classes of cases as the Secretary of Labor, acting as rapidly as practicable to make such rates of payments fully effective, shall by rule of regulation provide.”

Enforcement

of Labor StandardsLabor 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.

Reference

Citations & Metadata

Citation

12 U.S.C. § 1715c

Title 12Banks and Banking

Last Updated

Apr 6, 2026

Release point: 119-73