U.S. Sen. Jerry Moran (R-KS) has sponsored legislation to reform burdensome contractor mandates on federally assisted projects by setting wage requirements that better represent the real wages being paid in any given county across the country.
“Buying a home is a part of the American dream that is currently out of reach for many families,” Sen. Moran said on Nov. 13. “Reducing the burden of federal regulations will help homebuilders meet the demand for new homes, making homeownership a reality for more Kansans.”
The senator on Nov. 3 introduced the Affordable Housing Expansion Act, S. 3092, to make targeted reforms to requirements under the Davis-Bacon Act, enacted in 1931 to require construction contractors involved in certain federally funded or federally assisted construction contracts, like those participating in various federal housing programs, to pay individuals working on the contract at least the prevailing wages of the vicinity in which the construction project is located.
In turn, however, this can disincentivize the construction of affordable housing due to the high costs it places on construction contractors and the administrative burden that accompanies it, according to a bill summary provided by Sen. Moran’s staff.
The U.S. Department of Labor sets prevailing wage rates by reviewing data submitted by construction contractors through voluntary surveys, which can be, at times, inaccurate or inconsistent.
If enacted, the reforms would reduce labor costs and administrative burdens on residential construction contractors to free up capital that could be redirected toward building additional affordable housing, the summary says.
The Wichita Area Builders Association, the National Association of Home Builders, the Mortgage Bankers Association, and the Associated Builders and Contractors endorsed the bill.