HOME – Federal Program Requirements

Section 3 Documentation

Section 3 is to ensure that employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, and consistent with existing Federal, State, and local laws and regulations, be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing, and to business concerns which provide economic opportunities to low- and very low-income persons.

Davis-Bacon

Labor standards, including Davis-Bacon federal prevailing wage requirements, shall apply to all rental housing projects with 12 or more HOME-assisted units. Information regarding Davis-Bacon can be found on the HUD Exchange website: Davis-Bacon and Labor Standards.

Radon Reduction

Recipients are responsible for providing radon testing of properties where buildings will be used for residential occupancy. In cases of substantial rehabilitations and new construction projects, an active radon mitigation system shall be incorporated into the design specifications.

Minority/Women’s Business Enterprise (MBE/WBE):

When possible, the Developer should ensure that minority businesses, and women’s business enterprises are considered when marketing and soliciting for contractors, subcontractors, laborers, and suppliers. Developers must maintain an MBE/WBE plan that demonstrates marketing and solicitation of MBE/WBE businesses and complete the reporting form at the completion of the project.

Build America, Buy America Act (“BABA”)

The Build America, Buy America Act (“BABA”) requires any infrastructure project funded by any Federal Financial Assistance (“FFA”) to apply a domestic content procurement preference—called the “Buy America Preference” (“BAP”).

This means that all manufactured products, and construction materials used in the infrastructure project are to have been sourced, and produced in the United States, unless there is a Federally approved waiver issued for any particular product that isn’t feasible.

The purpose of BABA is to bolster America’s industrial base, protect national security, and support high paying jobs. For additional information, please see Title IX of the Infrastructure Investment and Jobs Act (BABA).

Environmental Review Requirements

The appropriate Environmental Review must be completed by an environmental professional who is qualified to perform Phase I and Phase II Environmental Site Assessments.

Federally assisted projects are subject to a variety of environmental requirements. Developers are prohibited from undertaking, committing, or expending any funds (including non‐federal funds), to any physical or choice‐ limiting actions on the site, prior to an environmental clearance as required by 24 CFR Part 58.

Developers should be familiar with these requirements and are strongly encouraged to discuss any questions they have with ADFA staff prior to entering into a purchase agreement or submitting an application.