U.S. Department of Transportation
Federal Highway Administration
1200 New Jersey Avenue, SE
Washington, DC 20590

Skip to content U.S. Department of Transportation/Federal Highway AdministrationU.S. Department of Transportation/Federal Highway Administration


Construction Program Guide

Special Experimental Project No. 14 - FHWA/HUD Livability Initiative

In the June 25, 2010 edition of the Federal Register, FHWA published the Notice: "Livability Initiative Under Special Experimental Project No. 14" (http://www.gpo.gov/fdsys/pkg/FR-2010-06-25/pdf/2010-15438.pdf (.pdf)) The Notice announced FHWA's decision to permit States to request SEP-14 approval for contracting practices intended to enhance livability and sustainability as part of any project that is to be jointly funded with the Department of Housing and Urban Development (HUD).

For projects involving activities that otherwise meet the requirements for the use of FHWA and HUD funds, States may experiment under SEP-14 with combining these funding sources for single, integrated projects that are procured and bid under a single contract while complying with training, employment, and contracting requirements of HUD's Section 3, to the greatest extent feasible.  The purpose of the experiment is to gauge the extent to which HUD funding may be used for highway projects, the effects on competition whenever HUD's economic opportunity requirements are used on a joint FHWA/HUD project, and the extent to which the alignment of FHWA and HUD requirements further livability.

In particular, SEP-14 is intended to permit a State DOT or Local Public Agency to experiment with the use of both FHWA and HUD finding sources in the same construction contract. These funding types would ordinarily be incompatible under a single contract; HUD's Section 3 requires that preferential hiring be afforded to those individuals living in the project area, but FHWA regulations prohibit preferential hiring. However, for contracts approved under FHWA's SEP-14 program, the prohibition on hiring preferences would be waived to accommodate only Section 3 requirements.

Termination of the FHWA/HUD Livability Initiative Pilot Program

On October 6, 2017, the US DOT published a Federal Register Notice announcing the withdrawal of a proposed rulemaking for geographic hiring preferences and related pilot programs (The Local Labor Hiring Pilot Program (LLHPP) and the Livability Initiative Pilot Program).

FHWA approved local labor hiring preference pilot projects under its experimental contracting program Special Experimental Project No. 14. Including all approvals to date, the LLHPP has 12 approved SEP-14 workplans and 18 total projects from 11 different contracting agencies, while the Livability Initiative has 7 approved SEP-14 workplans and 7 total projects from 7 different contracting agencies. The approved pilot programs projects may continue without change. Contracting agencies are encouraged to provide their project evaluations as proposed in their SEP-14 and forward these to the Office of Infrastructure.



General Information
  1. Johnstown, PA (2013)
  2. New Orleans, LA (2013)
  3. Sultan, WA - Alder Ave. (2014)
  4. Buena Vista Township, MI - Buena Vista Center Transportation Improvement Project (2015)
  5. Binghamton, NY - Front Street Gateway (2016)
  6. Los Angeles, CA - Century Boulevard Extension Project (2017)
  7. New York, NY - Water Street Corridor Streetscape Improvement Project (2017)

See Project List for Workplans, Certifications, FHWA Approvals, reports, and other information.

Updated: 03/31/2023
Federal Highway Administration | 1200 New Jersey Avenue, SE | Washington, DC 20590 | 202-366-4000