CDBG Entitlement FAQ

Is Davis-Bacon triggered when there is interior and/or exterior rehabilitation of a condo unit within a multi-unit condominium where the occupant of the condo unit owns the air space through a recorded warranty deed? There are 4 units per building and 20 buildings on the property.

Date Published: May 2015

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For CDBG projects, residential properties containing 7 or fewer units are exempt from Davis-Bacon. However, the eight-unit threshold applies to the number of units on a property; not the number of units being rehabilitated or constructed and not the number of units funded with CDBG dollars. A property is defined as one or more buildings on an undivided lot or on contiguous lots or parcels which are commonly-owned and operated as one rental, cooperative, or condominium project. Because the property that you describe includes eight (8) or more units on an undivided lot under common ownership in one condominium project, the Davis-Bacon requirements apply. For further information, please refer to HUD Handbook 1344.1 Rev. 2.

Tags: CDBG Entitlement Program Davis-Bacon

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