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Department of Human Services
Gregory M. Bassi, Acting Secretary
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Do grantees have to comply with prevailing wage requirements?
In creating NSP, HERA did require compliance with federal labor standards, which under CDBG apply to all projects with 8 or more units. Under IHDA's existing housing financing programs, IHDA normally issues the wage decision by project at each individual per-construction conference. These are issued by the U.S. Department of Labor and are available on-line at
Will properties located in the floodplain be accepted in this program?
This generally refers to properties located in the 100-year floodplain. While the State is not rejecting outright any project within the flood plain, the State does not encourage applicants to request NSP funds to rehabilitate or build structures within the 100 year flood plain and expects most applicants to avoid working in these areas. In addition, the city or county where the property is located must be participating in the National Flood Insurance Program (NFIP), which includes local enforcement of a floodplain management ordinance. For a property to be assisted, the owner must carry NFIP flood insurance during the length of the affordability period and there may be floodproofing required as part of the rehabilitation including mitigation or flood proofing of all habitable floors below the flood plain. Also, any work in the flood plain requires a lengthy 8-step notice process as part of the environmental review and is also subject to federal Executive Order 11988.
Does Davis-Bacon wages differ from county prevailing wage rate?
While federal (USDOL) wage rates are often issued by county, they are also issued by city and even smaller geographic areas. The term "county prevailing wage rate" is generally referring to STATE prevailing wage rate, which are different. These are issued by the Illinois Department of Labor on a monthly basis by county, and are required to be used on State -financed projects, primarily public works, which are not being financed with any federal funds. Whereas federal wage rates distinguish residential from heavy/highway construction, the State PWRs do not, and only have one classification.
Does Davis Bacon apply to scattered site developments of 8 or more units?
It could, depending on the property ownership, if lots are contiguous, and whether or not the housing units are being treated as a single project, such as being bid as one project. It is recommended that single-family properties be acquired, rehabilitated, and sold separately or in smaller groups to avoid the appearance of circumventing federal labor standard requirements.
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