---
kind: "section"
citation: "25 U.S.C. § 4114"
title: "25"
title_heading: "Indians"
number: "4114"
heading: "Treatment of program income and labor standards"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/25/4114"
units:
  - "Chapter 43 — Native American Housing Assistance and Self-Determination"
  - "Subchapter I — Block Grants and Grant Requirements"
---

# §4114. Treatment of program income and labor standards

- (a) **Program income—**
  - (1) **Authority to retain—** Notwithstanding any other provision of this chapter, a [recipient](/usc/25/4103.md?p=19) may retain any program [income](/usc/25/4103.md?p=9) that is realized from any grant amounts under this chapter if—
    - (A) such [income](/usc/25/4103.md?p=9) was realized after the initial disbursement of the grant amounts received by the [recipient](/usc/25/4103.md?p=19); and
    - (B) the [recipient](/usc/25/4103.md?p=19) has agreed that it will utilize such [income](/usc/25/4103.md?p=9) for housing related activities in accordance with this chapter.
  - (2) **Prohibition of restricted access or reduction of grant—** The [Secretary](/usc/25/4103.md?p=20) may not restrict access to or reduce the grant amount for any [Indian tribe](/usc/25/4103.md?p=13-A) based solely on—
    - (A) whether the [recipient](/usc/25/4103.md?p=19) for the tribe retains program [income](/usc/25/4103.md?p=9) under [paragraph (1)](#a-1);
    - (B) the amount of any such program [income](/usc/25/4103.md?p=9) retained;
    - (C) whether the [recipient](/usc/25/4103.md?p=19) retains reserve amounts described in [section 4140 of this title](/usc/25/4140.md); or
    - (D) whether the [recipient](/usc/25/4103.md?p=19) has expended retained program [income](/usc/25/4103.md?p=9) for housing-related activities.
  - (3) **Exclusion of amounts—** The [Secretary](/usc/25/4103.md?p=20) may, by regulation, exclude from consideration as program [income](/usc/25/4103.md?p=9) any amounts determined to be so small that compliance with the requirements of this subsection would create an unreasonable administrative burden on the [recipient](/usc/25/4103.md?p=19).
  - (4) **Exclusion from program income of regular developer’s fees for low-income housing tax credit projects—** Notwithstanding any other provision of this chapter, any [income](/usc/25/4103.md?p=9) derived from a regular and customary developer’s fee for any project that receives a low-[income](/usc/25/4103.md?p=9) housing tax credit under [section 42 of title 26](/usc/26/42.md), and that is initially funded using a grant provided under this chapter, shall not be considered to be program [income](/usc/25/4103.md?p=9) if the developer’s fee is approved by the [State](/usc/25/4103.md?p=21) housing credit agency.
- (b) **Labor standards—**
  - (1) **In general—** Any contract or agreement for assistance, sale, or lease pursuant to this chapter shall contain a provision requiring that not less than the wages prevailing in the locality, as determined or adopted (subsequent to a determination under applicable [State](/usc/25/4103.md?p=21), tribal, or local law) by the [Secretary](/usc/25/4103.md?p=20), shall be paid to all architects, technical engineers, draftsmen, and technicians employed in the development, and all maintenance laborers and mechanics employed in the operation, of the [affordable housing](/usc/25/4103.md?p=2) project involved; and shall also contain a provision that not less than the wages prevailing in the locality, as predetermined by the [Secretary](/usc/25/4103.md?p=20) of Labor pursuant to sections 3141–3144, [3146](/usc/40/3146.md), and [3147](/usc/40/3147.md) of title 40, shall be paid to all laborers and mechanics employed in the development of the [affordable housing](/usc/25/4103.md?p=2) involved, and the [Secretary](/usc/25/4103.md?p=20) shall require certification as to compliance with the provisions of this paragraph before making any payment under such contract or agreement.
  - (2) **Exceptions—** [Paragraph (1)](#b-1) and the provisions relating to wages (pursuant to [paragraph (1)](#b-1)) in any contract or agreement for assistance, sale, or lease pursuant to this chapter, shall not apply to any individual who receives no compensation or is paid expenses, reasonable benefits, or a nominal fee to perform the services for which the individual volunteered and who is not otherwise employed at any time in the construction work.
  - (3) **Application of tribal laws—** [Paragraph (1)](#b-1) shall not apply to any contract or agreement for assistance, sale, or lease pursuant to this chapter, if such contract or agreement is otherwise covered by one or more laws or regulations adopted by an [Indian tribe](/usc/25/4103.md?p=13-A) that requires the payment of not less than prevailing wages, as determined by the [Indian tribe](/usc/25/4103.md?p=13-A).

## Source credit

(Pub. L. 104–330, title I, § 104, Oct. 26, 1996, 110 Stat. 4027; Pub. L. 106–568, title X, § 1003(j), Dec. 27, 2000, 114 Stat. 2930; Pub. L. 106–569, title V, § 503(i), Dec. 27, 2000, 114 Stat. 2965; Pub. L. 107–292, § 5, Nov. 13, 2002, 116 Stat. 2054; Pub. L. 109–136, § 3, Dec. 22, 2005, 119 Stat. 2644; Pub. L. 110–411, title I, § 104, Oct. 14, 2008, 122 Stat. 4323.)

## Notes

### Editorial Notes

### References in Text

This chapter, referred to in text, was in the original “this Act”, meaning Pub. L. 104–330, Oct. 26, 1996, 110 Stat. 4016, known as the Native American Housing Assistance and Self-Determination Act of 1996. For complete classification of this Act to the Code, see Short Title note set out under section 4101 of this title and Tables.

### Codification

“Sections 3141–3144, 3146, and 3147 of title 40” substituted in subsec. (b)(1) for “the Act of March 3, 1931 (commonly known as the Davis-Bacon Act; chapter 411; 46 Stat. 1494; 40 U.S.C. 276a et seq.)” on authority of Pub. L. 107–217, § 5(c), Aug. 21, 2002, 116 Stat. 1303, the first section of which enacted Title 40, Public Buildings, Property, and Works.

### Amendments

2008—Subsec. (a)(4). Pub. L. 110–411 added par. (4).

2005—Subsec. (a)(2). Pub. L. 109–136 inserted “restrict access to or” after “not” in introductory provisions.

2002—Subsec. (a)(1). Pub. L. 107–292, § 5(1)(A), substituted “Notwithstanding any other provision of this chapter, a recipient” for “A recipient” in introductory provisions.

Subsec. (a)(1)(B). Pub. L. 107–292, § 5(1)(B), added subpar. (B) and struck out former subpar. (B) which read as follows: “the recipient has agreed that it will utilize the program income for affordable housing activities in accordance with the provisions of this chapter.”

Subsec. (a)(2). Pub. L. 107–292, § 5(2)(A), inserted “restricted access or” before “reduction” in heading.

Subsec. (a)(2)(D). Pub. L. 107–292, § 5(2)(B)–(D), added subpar. (D).

2000—Subsec. (b)(1). Pub. L. 106–568, § 1003(j)(1), and Pub. L. 106–569, § 503(i)(1), amended par. (1) identically, substituting “Act of March 3, 1931 (commonly known as the Davis-Bacon Act; chapter 411; 46 Stat. 1494; 40 U.S.C. 276a et seq.)” for “Davis-Bacon Act (40 U.S.C. 276a–276a–5)”.

Subsec. (b)(3). Pub. L. 106–568, § 1003(j)(2), and Pub. L. 106–569, § 503(i)(2), amended subsec. (b) identically, adding par. (3).

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective Oct. 1, 1997, except as otherwise expressly provided, see section 107 of Pub. L. 104–330, set out as a note under section 4101 of this title.