24 C.F.R. § 200.425
§ 200.425 Exemptions. (24 CFR Part 200)
Operative Text
(a) Transactions of $10,000 or under. Contracts and subcontracts not exceeding $10,000 are exempt from the requirements of the equal opportunity clause. No contractor or subcontractor shall procure supplies or services in less than usual quantities to avoid applicability of the equal opportunity clause. (b) Contracts and subcontracts for indefinite quantities. Contracts and subcontracts for indefinite quantities are exempt from the requirements of the equal opportunity clause if the amount to be ordered in a single year under any such contract will not exceed $10,000. (c) Work outside the United States. Contracts and subcontracts with regard to work performed outside the United States by employees who were not recruited within the United States are exempt from the requirements of the equal opportunity clause. (d) Others. Other exemptions set forth in the regulations of the Secretary of Labor at 41 CFR 60-1.5 apply to transactions under this subpart.
Section 200.425 of 24 CFR Part 200 establishes several categories of contracts and subcontracts that are not subject to the equal opportunity clause requirements. Exemptions apply to agreements valued at $10,000 or less, indefinite-quantity contracts where annual orders won't exceed $10,000, and work performed outside the United States by employees not recruited domestically. The rule also explicitly prohibits artificially splitting contracts into smaller amounts just to fall under the $10,000 threshold, and it incorporates additional exemptions found in the Secretary of Labor's regulations at 41 CFR 60-1.5.
Plain English — not legal advice.
Property owners and managers working with HUD-related contracts or subcontracts generally review each agreement against the exemption thresholds outlined in § 200.425 before determining whether the equal opportunity clause applies. Compliant operators avoid structuring procurement in smaller increments solely to stay under the $10,000 limit, as the rule expressly prohibits that practice. For indefinite-quantity contracts, operators typically track projected annual order volumes to confirm they remain within the exemption threshold, and they consult the additional exemptions catalogued at 41 CFR 60-1.5 for any transactions that may fall outside the categories listed directly in § 200.425.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
While § 200.425 primarily governs contractor and subcontractor obligations rather than individual tenant rights, tenants in HUD-assisted housing benefit from the broader equal opportunity framework that these exemptions define and limit. Understanding which contracts are exempt under § 200.425 can be relevant context when a tenant believes that work or services connected to their housing were procured in a way designed to circumvent equal opportunity requirements. Tenants who have concerns about potential violations of equal opportunity rules in their housing context may find it useful to consult a tenant-rights organization or reach out to HUD's Office of Fair Housing and Equal Opportunity for general information.
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.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.