To answer your questions, developments receiving TCAP must abide by Davis Bacon requirements without exception. Additional federal cross-cutting requirements that apply to TCAP awardees include many of the same requirements of the HOME program such as Section 504 (accessibility), Affirmatively Furthering Fair Housing, NEPA environmental reviews, lead-based paint requirements, etc. The environmental review requirements prohibit owners and contractors from undertaking any “choice-limiting” activities from the time of application until the federal environmental review is complete and HUD has authorized the commitment of funds. Choice-limiting activities include any activity that results in a physical change to the property such as acquisition, demolition, rehabilitation, conversion, repair, construction, and leasing or disposition.
Project owners conducting construction activity at the time of application and before the completion of environmental review and HUD approval proceed at their own risk. A development that fails to successfully complete the federal environmental review process is ineligible for TCAP funds.