The Healey-Driscoll Administration has announced a major update to compliance requirements for housing development and construction projects funded by key state and federal programs. Starting January 1, 2025, the Executive Office of Housing and Livable Communities (EOHLC) will enforce new rules that directly impact how owners and developers manage contracts and oversee construction practices.
If your project relies on funding from programs such as Low-Income Housing Tax Credits (LIHTC), the American Rescue Plan Act (ARPA), or the Affordable Housing Trust Fund (AHTF), you need to act now to align your construction contracts with these requirements.
According to EOHLC, its new policies aim to uphold labor laws, ensure worker protections, and prevent wage theft on projects funded by its programs. Here are the key obligations construction project owners must be aware of:
- Requirement to Maintain a Subcontractor List
- General contractors must provide an approved subcontractor list before construction begins.
- Owners must update this list throughout the project and ensure no unapproved subcontractors are performing work.
- Certification of Compliance
- Contractors and subcontractors must certify compliance with wage laws, worker protections, and safety standards before starting work.
- Owners must retain these certifications for inspection for at least three years after project completion.
- Screen for Debarment and Violations
- Contractors with recent debarments or serious labor law violations cannot work on EOHLC-funded projects.
- Owners must check multiple state and federal debarment lists before signing contracts.
- Enhance Construction Contracts
- All contracts must include provisions prohibiting subcontractors with disqualifying violations.
- General contractors must approve subcontractors in writing.
- Enforce Worker Protections
- General contractors must post job site notices on workers’ rights, maintain certified payroll records, and provide OSHA certifications for employees.
- Secure Insurance and Bonding
- Contractors must maintain workers’ compensation, liability insurance, and payment and performance bonds acceptable to EOHLC.
Non-compliance with these new guidelines could lead to funding delays, project interruptions, or penalties. Project Owners must ensure their construction contracts meet these standards and that all contractors and subcontractors are aligned with EOHLC’s policies.
Prince Lobel’s Real Estate and Construction Groups are here to help safeguard your projects, align with EOHLC’s requirements, and stay ahead of evolving compliance obligations. For questions, please reach out to Kenneth Sherman or members of either of these groups.