S. 3092: Affordable Housing Expansion Act

This bill, known as the Affordable Housing Expansion Act, aims to make several amendments to existing laws, particularly regarding wage determination for workers involved in affordable housing construction. Its main goals and provisions include:

1. Updates to Wage Rate Calculations

The bill proposes changes to how prevailing wage rates are calculated under Section 3142 of title 40 of the United States Code. Key changes include:

• Modifying what constitutes "work" related to wage determinations to allow for the inclusion of various geographic groupings.
• Implementing a new methodology for collecting wage data, which should enhance the accuracy and reliability of wage determinations. This includes increasing participation from businesses in surveys and ensuring fair representation from both unionized and non-unionized firms.

2. Multiple Wage Rate Determinations

The bill allows for a single wage rate determination that corresponds specifically to residential projects covered under various federal housing acts. This aims to simplify compliance for affordable housing initiatives.

3. Davis-Bacon Modernization Working Group

Within 60 days of the bill's enactment, a working group will be established to modernize certain requirements of the Davis-Bacon Act. This group will:

• Assess whether the residential classification can be applied to affordable housing units with five or more stories for wage determinations.
• Develop recommendations for waiving or streamlining wage rate requirements for specific affordable housing projects funded by the Federal Housing Administration.
• Review the potential impacts of having the Bureau of Labor Statistics determine prevailing wages instead of the Secretary of Labor.

The group will consist of representatives from various federal agencies and industry stakeholders and will serve without compensation.

4. Reporting Requirements

The working group is required to submit a report with findings and recommendations within one year of its establishment. This report must be submitted to the Secretary of Labor and relevant congressional committees.

5. Amendments to Other Housing Acts

The bill amends several housing-related laws, such as:

• The National Housing Act
• The Housing Act of 1959
• The Native American Housing Assistance and Self-Determination Act of 1996
• The Cranston-Gonzalez National Affordable Housing Act
• The United States Housing Act of 1937

These amendments primarily adjust how labor wage determinations are referenced in these laws, shifting from a focus on “similar character” to “residential character” as assessed by the Secretary of Labor.

6. Additional Provisions

The bill also outlines that the Davis-Bacon Modernization Working Group will terminate once its report is finalized and that existing rules governing federal advisory committees do not apply to this working group.

Relevant Companies

• PHM - PulteGroup, Inc.: As a large homebuilder, changes in wage determinations may affect their construction costs for affordable housing projects.
• DHI - D.R. Horton, Inc.: Changes in wage calculations and federal housing regulations could directly impact their projects and profit margins, especially in the affordable housing segment.
• LEN - Lennar Corporation: As one of the leading homebuilders, the bill's potential for increased labor costs could affect their financial planning for future projects.
• KBH - KB Home: Changes in wage rate calculations may influence their affordability strategies and project costs.
• TOL - Toll Brothers, Inc.: Adjustments to labor wage rates could impact their luxury and affordable housing projects, affecting profitability and pricing strategies.