Affordable Housing Expansion Act
- Bill Number
- S. 3092
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Housing and Community Development
- Status
- Introduced
- Latest Action
- 2025-11-03: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2025-11-19T15:33:58Z
AI-Generated Summary
Purpose
The Affordable Housing Expansion Act (S. 3092) aims to modernize the Davis-Bacon Act—a law requiring prevailing wages (the typical wages paid in a local area for similar work) on federally funded construction projects—specifically for affordable housing initiatives. By updating how these wages are calculated and applied, the bill seeks to lower construction costs, thereby increasing the supply of affordable housing units and improving access for low- and moderate-income families.
Key Provisions
- Updates to Wage Rate Calculations (Section 2(a)):
- Expands the geographic areas used for determining prevailing wages beyond traditional state subdivisions to include broader groupings, such as metropolitan statistical areas (urban regions defined by the U.S. Census Bureau), while preventing the use of urban data for rural areas.
- Applies to work on civil projects or in the District of Columbia.
- Changes to Survey Methodology (Section 2(b)):
- Requires the Secretary of Labor (head of the Department of Labor, or DOL) to review and revise survey methods for collecting wage data within one year of enactment.
- Revisions must incorporate reliable sources like Bureau of Labor Statistics (BLS) surveys, improve business participation rates, and ensure balanced representation from unionized (represented by labor organizations) and non-unionized businesses.
- Limitation to Single Wage Rate for Housing Projects (Section 3):
- Restricts prevailing wage determinations under key federal housing laws to a single rate based on the "residential character" of the project (focusing on typical residential construction wages), rather than multiple rates for different aspects.
- Establishment of Davis-Bacon Modernization Working Group (Section 4):
- Creates a temporary working group within DOL, in consultation with the Department of Housing and Urban Development (HUD), to recommend updates to Davis-Bacon requirements.
- Duties include:
- Assessing if residential wage classifications can apply to affordable housing buildings with 5 or more stories.
- Proposing ways to waive or simplify prevailing wage rules for certain new FHA (Federal Housing Administration)-backed affordable rental projects.
- Evaluating the use of BLS data for wage determinations instead of voluntary business surveys.
- Composition: Representatives from DOL, HUD, housing construction associations, financial services, affordable housing groups, state public housing agencies, tribal housing entities, and labor organizations.
- The group must submit a majority-supported report to DOL and relevant congressional committees within one year and then sunsets (ends).
- Amendments to Specific Housing Laws (Sections 5–9):
- Updates five major housing statutes (National Housing Act, Housing Act of 1959, Native American Housing Assistance and Self-Determination Act of 1996, Cranston-Gonzalez National Affordable Housing Act, and United States Housing Act of 1937) to base prevailing wages on the "residential character" of projects, using rates applicable at the time a project application is filed, rather than broader "similar character" determinations.
Significant Changes to Existing Law
- Shifts prevailing wage calculations from "similar character" (which could include higher commercial or industrial rates) to "residential character" specifically for affordable housing, potentially resulting in lower wage requirements.
- Broadens data sources for wages beyond local subdivisions and voluntary surveys, incorporating federal BLS data for more objective and representative results.
- Introduces a working group for ongoing modernization, which is new and exempt from the Federal Advisory Committee Act (a law governing federal advisory groups to streamline operations).
- Limits housing projects to one unified residential wage rate, simplifying compliance but altering how wages are applied across federal housing programs.
Potential Impacts
- On Government Agencies: DOL and HUD will need to implement survey revisions, form the working group, and update wage determinations, potentially reducing administrative burdens but requiring new resources for data integration. Could lead to faster project approvals and more efficient use of federal housing funds.
- On Citizens: Low-income renters and homebuyers may benefit from increased affordable housing supply due to lower construction costs, addressing housing shortages in urban and rural areas, including Native American communities. However, construction workers might see wage variations, potentially affecting job quality.
- On International Relations: No direct impacts; the bill focuses on domestic U.S. housing and labor policies.
Main Stakeholders Affected
- Government Entities: DOL (oversees wage determinations), HUD (manages housing programs), BLS (provides data support), and congressional committees on labor and housing.
- Industry and Labor Groups: Housing construction associations, affordable housing developers, financial services (e.g., lenders for FHA projects), state and tribal public housing agencies, and labor organizations representing construction workers.
- Communities: Low- and moderate-income families, Native American tribes, and residents in public housing who rely on federally assisted affordable units.
- Businesses: Construction firms (unionized and non-unionized), which will face changes in survey participation and wage compliance.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens Davis-Bacon Act implementation for housing by standardizing residential wage rates, potentially reducing litigation over wage classifications. The working group's recommendations could lead to future administrative rules or laws, but exemptions from advisory committee rules may raise transparency concerns.
- Constitutional: Aligns with Congress's authority under the Spending Clause (Article I, Section 8) to attach conditions like prevailing wages to federal funds, without altering core worker protections.
- Political: Balances housing affordability goals (supported by developers and housing advocates) with labor interests (protecting worker wages), likely sparking debate in a polarized Congress. Could influence broader infrastructure and housing policy discussions, especially amid ongoing affordability crises.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-11-03: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2025-11-03: Introduced in Senate
Bill Versions
- Affordable Housing Expansion Act — issued 2025-11-03 — PDF (11 pages)