CDBG Labor Compliance Monitoring

HUD Labor Compliance Monitor Requirements

In all projects in which federal funds are awarded that trigger Davis Bacon Related Act (DBRA) compliance, the awarding agency must designate a Labor Compliance Specialist to monitor compliance and take responsibility for enforcement of HUD grant regulations.

Community Development Block Grant (CDBG) Program

The DBRA apply to projects funded in whole or in part by CDBG funds that involve rehabilitation or new construction of residential property containing 8 or more units that are operated as one rental, cooperative or condominium project. Single-family homeowner properties are excluded from DBRA applicability. Since CDBG funding is administered by the State of New Mexico Department of Finance and Administration (DFA), the provisions of the New Mexico Public Works Minimum Wage Act also apply to CDBG projects involving 8 or more units, as outlined in the CDBG Program Manual, issued by DFA.


DBRA requirements are applicable to projects funded by HOME that assist 12 units or more. Assisting units includes construction and non-construction activities such as acquisition, professional services (architecture, engineering, etc.), and homebuyer assistance. Although the threshold is only applicable to HOME funded units, once Davis Bacon is triggered, it is applicable to the entire project, including all portions of the project not funded by HOME. If a project is phased, such that less than 12 HOME units are constructed at one time, DBRA requirements will still apply to all project phases.

Neighborhood Stabilization Program (NSP)

The DBRA apply to projects funded by the Neighborhood Stabilization Program that assist 8 units or more in a single structure. NSP-funded projects that involve only single-unit structures are not covered by DBRA. Since NSP funding is administered by the State of New Mexico Department of Finance and Administration (DFA), the provisions of the New Mexico Public Works Minimum Wage Act also apply to NSP projects involving 8 or more units, as outlined in the NSP Implementation Manual, issued by DFA.

ARRA-Funded Programs

The American Recovery and Reinvestment Act of 2009 (ARRA) requires that all programs it funds that involve construction (including alteration and repair) are covered by the DBRA. Programs for which DBRA apply included the Tax Credit Assistance Program (TCAP) and ARRA-funded portions of the Weatherization Assistance Program (WAP). Additional information may be found at DOL's Wage and Hour Division website for information related to ARRA (

Labor Compliance Monitoring for Federal & State Construction Projects

We provide pre-bid assistance to City/County staff in preparing related documents to ensure City/County compliance with federal and state regulations. We also provide assistance with bid evaluation, pre-construction, construction and post construction project phases, including but not limited to, attending meetings with contractors, reviewing certified payroll records and other documents; conducting interviews, and preparing reports as necessary to conform to the federal or state program (e.g., CDBG) requirements. We can also notify and provide training to City/County staff on all new federal/state (e.g., CDBG) regulations and processes.

Services We Provide City and County Agencies

  1. Review agreements and determine specific labor standards parameters applicable to the specific project.
  2. Provide City/County staff with required labor compliance standards language for inclusion in construction bid documents and all applicable contracts to be executed by City/County and its contractors.
  3. Assist City/County with labor compliance related requests for information during procurement process.
  4. Implement and monitor Equal Employment Opportunities (EEO) program.
  5. Ensure Prevailing Wage and Federal Wage Decision is incorporated in the project specifications and contract.
  6. Ensure Federal Wage Decision is current at bid opening or other date as appropriate.
  7. Verify contractor/subcontractor eligibility to contract with Federal and State agencies (SAM/State debarment verifications, etc.) and report discrepancies or concerns prior to award.
  8. Prepare and submit contract award notices to Office of Federal Contract Compliance Programs and CDBG.
  9. Participate in preconstruction meetings and inform contractors of wage and reporting obligations. Prepare and distribute preconstruction meeting minutes as they pertain to labor compliance requirements.
  10. Create and maintain Labor Compliance Administration files.
  11. Conduct employee field interviews and reconcile with certified payrolls. Verify and document the posting of federal notices on jobsites.
  12. Perform ongoing and timely monitoring reviews of weekly certified payroll reports (CPRs) to insure compliance with higher of federal/state applicable wages and related submissions for compliance.
  13. Ensure apprentices, if any, are documented and currently active in DAS and DOL-OA approved programs.
  14. Notify prime contractor(s) in writing of any deficiencies in wages, overtime compensation, incomplete or inaccurate CPRs, and/or incomplete or inaccurate Statements of Compliance; define corrective actions and notify contractor in writing when full compliance has been achieved.
  15. Identify violations and investigate complaints of underpayment to workers.
  16. Prepare any required reports of labor standards violations to HUD or the DIR as necessary.
  17. Prepare various reports for contract and labor compliance, including but not limited to the Contract and Subcontract Activity Report and Semi-Annual Labor Standards Enforcement Report.
  18. Prepare and issue final project close out report and provide project related data to City/County as requested.
  19. Maintain continuous communication with City/County staff.

Consulting Services We Provide

  • Review public works preconstruction contracts
  • Monitor DIR contractor/subcontractor certified payrolls
  • Audit labor classification for each worker employed
  • Review DIR pre-DAS 140/142 submissions
  • Review CAC training fund contributions form CAC-2
  • Review DIR Fringe Benefits Statement PW-26
  • Monitor DIR wage determinations
  • Audit fringe benefits allowances
  • Review DIR holiday payment requirements
  • Audit DIR travel & subsistence requirements
  • Caltrans Labor Compliance
  • County of Sacramento Labor Compliance
  • City of Los Angeles Labor Compliance
  • Los Angeles Unified School District Labor Compliance
  • Federal Davis-Bacon Project Monitoring
  • Federal DBE Implementation & Review
  • Federal FAA AIP Goal Setting
  • DIR & Davis-Bacon Training
  • DIR Civil Wage Penalty Review
  • Local-Hire Review (e.g., San Francisco)
  • Skilled and Trained Workforce

Give us a call to discuss your labor compliance requirements: 916-234-3958.

This email is intended for general information purposes only and should not be construed as legal advice
or legal opinions on any specific facts or circumstances.

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