application of davisbacon act to cooperative housing projects insured under section 221(d)(3) and (d)(4) and mortgages insured under section 221(h)(1)

application of davisbacon act to cooperative housing projects insured under section 221(d)(3) and (d)(4) and mortgages insured under section 221(h)(1) Sec. 311. The third sentence of section 212(a) of the National Housing Act is amended by striking out “subsection (d)(3) or (d) (4).” and inserting in lieu thereof “subsection (d) (3) or (d) (4) and (deeming the term ‘construction’ as used in the first sentence of this subsection to mean rehabilitation) of any mortgage described in subsection (h)(1) which covers property on which there is located a dwelling or dwellings designed principally for residential use for more than eight families; except that compliance with such provisions may be waived by the Secretary— “(1) with respect to mortgages described in such subsection (d)(3) or (d) (4), in cases or classes of cases where laborers or mechanics (not otherwise employed at any time in the construe-80 Stat. 1271tion of the project) voluntarily donate their services without compensation for the purpose of lowering their housing costs in a cooperative housing project and the Secretary determines that any amounts saved thereby are fully credited to the cooperative undertaking the construction, and “(2) with respect to mortgages described in such subsection (h) (1), in cases or classes of cases where prospective owners of such dwellings voluntarily donate their services without compensation, or other persons (not otherwise employed at any time m the rehabilitation of the property) voluntarily donate their services without compensation, and the Secretary determines that any amounts saved thereby are fully credited to the nonprofit organization undertaking the rehabilitation.”