Title 25IndiansRelease 119-73

§4114 Treatment of program income and labor standards

Title 25 › Chapter CHAPTER 43— - NATIVE AMERICAN HOUSING ASSISTANCE AND SELF-DETERMINATION › Subchapter SUBCHAPTER I— - BLOCK GRANTS AND GRANT REQUIREMENTS › § 4114

Last updated Apr 6, 2026|Official source

Summary

Recipients may keep program income from a grant if the income comes in after the grant’s first payment and the recipient agrees to use it for housing-related activities under this law. The Secretary cannot cut or limit a tribe’s grant just because the recipient keeps program income, keeps reserve amounts (see section 4140), the amount kept, or spends the income on housing. The Secretary can make rules that ignore very small amounts as program income if following the rule would be an unreasonable burden. Money from a normal developer’s fee for a project that gets a low-income housing tax credit (under section 42 of title 26) and that started with a grant under this law is not program income if the State housing credit agency approves the fee. Any contract for assistance, sale, or lease under this law must require paying at least the local prevailing wages to architects, technical engineers, draftsmen, technicians, maintenance workers, and mechanics involved, and must pay the wages set by the Secretary of Labor under sections 3141–3144, 3146, and 3147 of title 40 for laborers and mechanics on the project. The recipient must certify compliance before any payment. Volunteers who get no pay or only expenses, reasonable benefits, or a small fee and who do not do construction work are not covered. If an Indian tribe has its own law requiring prevailing wages, the federal wage rule does not apply.

Full Legal Text

Title 25, §4114

Indians — Source: USLM XML via OLRC

(a)(1)Notwithstanding any other provision of this chapter, a recipient may retain any program income that is realized from any grant amounts under this chapter if—
(A)such income was realized after the initial disbursement of the grant amounts received by the recipient; and
(B)the recipient has agreed that it will utilize such income for housing related activities in accordance with this chapter.
(2)The Secretary may not restrict access to or reduce the grant amount for any Indian tribe based solely on—
(A)whether the recipient for the tribe retains program income under paragraph (1);
(B)the amount of any such program income retained;
(C)whether the recipient retains reserve amounts described in section 4140 of this title; or
(D)whether the recipient has expended retained program income for housing-related activities.
(3)The Secretary may, by regulation, exclude from consideration as program income any amounts determined to be so small that compliance with the requirements of this subsection would create an unreasonable administrative burden on the recipient.
(4)Notwithstanding any other provision of this chapter, any income derived from a regular and customary developer’s fee for any project that receives a low-income housing tax credit under section 42 of title 26, and that is initially funded using a grant provided under this chapter, shall not be considered to be program income if the developer’s fee is approved by the State housing credit agency.
(b)(1)Any contract or agreement for assistance, 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, tribal, 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 affordable 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 section 3141–3144, 3146, and 3147 of title 40, shall be paid to all laborers and mechanics employed in the development of the affordable housing involved, and the Secretary shall require certification as to compliance with the provisions of this paragraph before making any payment under such contract or agreement.
(2)Paragraph (1) and the provisions relating to wages (pursuant to paragraph (1)) in any contract or agreement for assistance, sale, or lease pursuant to this chapter, shall not apply to any individual who receives no compensation or is paid expenses, reasonable benefits, or a nominal fee to perform the services for which the individual volunteered and who is not otherwise employed at any time in the construction work.
(3)Paragraph (1) shall not apply to any contract or agreement for assistance, sale, or lease pursuant to this chapter, if such contract or agreement is otherwise covered by one or more laws or regulations adopted by an Indian tribe that requires the payment of not less than prevailing wages, as determined by the Indian tribe.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in text, was in the original “this Act”, meaning Pub. L. 104–330, Oct. 26, 1996, 110 Stat. 4016, known as the Native American Housing Assistance and Self-Determination Act of 1996. For complete classification of this Act to the Code, see

Short Title

note set out under section 4101 of this title and Tables. Codification “section 3141–3144, 3146, and 3147 of title 40” substituted in subsec. (b)(1) for “the Act of March 3, 1931 (commonly known as the Davis-Bacon Act; chapter 411; 46 Stat. 1494; 40 U.S.C. 276a et seq.)” 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

2008—Subsec. (a)(4). Pub. L. 110–411 added par. (4). 2005—Subsec. (a)(2). Pub. L. 109–136 inserted “restrict access to or” after “not” in introductory provisions. 2002—Subsec. (a)(1). Pub. L. 107–292, § 5(1)(A), substituted “Notwithstanding any other provision of this chapter, a recipient” for “A recipient” in introductory provisions. Subsec. (a)(1)(B). Pub. L. 107–292, § 5(1)(B), added subpar. (B) and struck out former subpar. (B) which read as follows: “the recipient has agreed that it will utilize the program income for affordable housing activities in accordance with the provisions of this chapter.” Subsec. (a)(2). Pub. L. 107–292, § 5(2)(A), inserted “restricted access or” before “reduction” in heading. Subsec. (a)(2)(D). Pub. L. 107–292, § 5(2)(B)–(D), added subpar. (D). 2000—Subsec. (b)(1). Pub. L. 106–568, § 1003(j)(1), and Pub. L. 106–569, § 503(i)(1), amended par. (1) identically, substituting “Act of March 3, 1931 (commonly known as the Davis-Bacon Act; chapter 411; 46 Stat. 1494; 40 U.S.C. 276a et seq.)” for “Davis-Bacon Act (40 U.S.C. 276a–276a–5)”. Subsec. (b)(3). Pub. L. 106–568, § 1003(j)(2), and Pub. L. 106–569, § 503(i)(2), amended subsec. (b) identically, adding par. (3).

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Oct. 1, 1997, except as otherwise expressly provided, see section 107 of Pub. L. 104–330, set out as a note under section 4101 of this title.

Reference

Citations & Metadata

Citation

25 U.S.C. § 4114

Title 25Indians

Last Updated

Apr 6, 2026

Release point: 119-73