The City is initiating an energy efficiency program for residents using CDBG funds. We will have 2 contractors: an energy audit contractor and a construction contractor. We plan to have one agreement with each contractor to cover the entire project. The homes are scattered sites throughout the city and have individual homeowners. Even though we are expending over $2,000 and assisting approximately 10 homes, does Davis-Bacon apply since the homes are not located on contiguous lots and are individually owned?
Date Published: May 2015
There are two thresholds that trigger Davis-Bacon in the CDBG Program. The first is when CDBG is used to fund construction contracts of more than $2,000 in non-residential properties. The second threshold is when CDBG is used to fund residential construction contracts for properties that include 8 or more units. A Davis-Bacon covered residential property is defined as 8 or more units in 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. In the project described, single family units on separately owned, non-contiguous lots, Davis-Bacon does not apply.