24 C.F.R. § 200.420
§ 200.420 Equal opportunity clause to be included in contracts and subcontracts. (24 CFR Part 200)
Operative Text
(a) The equal opportunity clause prescribed by the Commissioner pursuant to the regulations of the Secretary of Labor (41 CFR chapter 60) shall be included in each nonexempt contract and subcontract for work receiving FHA assistance. (b) Subcontracts less than $50,000 may incorporate by reference the equal opportunity clause. (c) The equal opportunity clause shall be deemed to be a part of each nonexempt contract or subcontract whether or not it is physically incorporated in such contract.
Under 24 CFR § 200.420, any contract or subcontract that is not exempt and involves work supported by FHA assistance must include an equal opportunity clause, as prescribed under the Secretary of Labor's regulations at 41 CFR chapter 60. Smaller subcontracts valued under $50,000 are permitted to incorporate this clause by reference rather than printing it in full. Notably, the clause is considered legally present in every covered contract regardless of whether it physically appears in the document.
Plain English — not legal advice.
Property owners and managers overseeing FHA-assisted construction or rehabilitation work should be aware that 24 CFR § 200.420 requires the equal opportunity clause to appear in all nonexempt contracts and subcontracts tied to that work. Compliant operators typically verify that prime contracts contain the full clause and that subcontracts either reproduce it or, for those under $50,000, incorporate it by reference. Because the clause is deemed present by law even when omitted from the written document, operators generally treat it as a binding obligation across their entire contractor and subcontractor chain.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For tenants living in or seeking housing in FHA-assisted developments, 24 CFR § 200.420 establishes that equal opportunity protections are embedded in the contracts governing construction and related work on those properties, whether or not the clause is visibly written into those agreements. This means the contractors and subcontractors involved in such projects are bound by federal equal opportunity requirements as a matter of law. Tenants who believe these protections have been disregarded may consider reaching out to HUD, consulting a tenant-rights organization, or contacting the Office of Federal Contract Compliance Programs, which oversees the underlying 41 CFR chapter 60 regulations.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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