§1437j Labor Standards and Community Service Requirement

Summary

Contracts for loans, contributions, sales, or leases under the public housing program must pay the local prevailing wages to certain professionals (like architects, engineers, draftsmen, technicians) and to maintenance workers, laborers, and mechanics working on the project. The Secretary and the Secretary of Labor set those wage rates, and contractors must certify they followed the rule before the government makes any payment. People who truly volunteer are not covered if they do the work without pay (or only get expenses, reasonable benefits, or a small token fee) and are not otherwise employed in the construction work. Every adult living in public housing must either do 8 hours per month of community service (not political work) in their community or spend 8 hours per month in an economic self-sufficiency program (programs that help people get jobs, training, education, or work experience). Adults 62 or older; blind or disabled people who cannot comply or their primary caregivers; people in approved work activities; people exempt under state welfare rules; and people in welfare families not found noncompliant are excused. The housing agency must check each resident’s compliance 30 days before a lease ends, follow fair procedures, and tell residents if they are noncompliant and how to use the agency’s grievance process. If a resident fails to comply, the agency may refuse to renew or may end the lease unless the resident agrees before the lease ends to make up the needed hours over the 12‑month lease. Agencies must describe how they will run these rules in their plans, may allow service at non‑agency sites, may not replace regular employees with community service workers or take away paid jobs, and may run the program themselves or use resident groups or contractors. If a family’s welfare benefits are cut for failing welfare program work rules or for fraud, the housing agency may not lower the family’s rent contribution because of the resulting income drop; this rule began on October 21, 1998, and does not apply until the housing agency gets written notice from the welfare agency. Families affected have a right to review, and housing agencies should try to make cooperation agreements with welfare agencies while protecting confidentiality. Economic self-sufficiency program: programs to help people become financially independent or get work, such as job training, employment counseling, work placement, basic skills or education, workfare, apprenticeships, or similar activities.