You do not have to use union construction shops for HUD financing,
however you do have to ensure all workers are paid Prevailing Wages based
upon the building type and location of the project. Another video covers
this in more detail, but in general Prevailing Wage does not have much
impact unless you are in major metro markets.

It is very important early on when putting together your development
proforma to make sure the builder(s) you are talking to factor in Prevailing
Wage to their cost estimates.