HOUSING AUTHORITY OF THE CITY OF HIGH POINTLocal Government

Criteria Laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Non-federal entities shall include in their construction contracts subject to the wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the non-Federal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition and Perspective During July of 2024, HUD conducted a Federal Labor Standards Monitoring Review of the Authority’s administration and enforcement of federal labor standards provisions. The Review Report, dated July 22, 2024, included the following Review Finding: Finding 1- Federal Labor Standards Administration and Enforcement – Establishment of a Construction Management System: The Authority does not have a system in place to ensure all Davis-Bacon compliance principles and procedures are carried out. Therefore, contracts are awarded without the appropriate labor standards provisions, wage rates, and verification of contractor eligibility. In addition, payrolls were not collected or reviewed for compliance and employee interviews were not conducted. Cause HUD identified the cause of the Finding as follows: The agency does not have procedures in place to ensure compliance with applicable labor standards requirements. The agency is also unfamiliar with the administration and enforcement requirements of Davis-Bacon labor standards compliance. Effect Noncompliance with Davis Bacon Act requirements. Questioned Costs – None noted Recommendation The Authority has responded to HUD’s Review Finding with specific corrective actions it has implemented. We recommend that the Authority continue executing its corrective actions outlined in its response communicated to HUD. Reply Management has issued a formal response to HUD’s Finding dated September 30, 2024, outlining specific corrective actions and considers the corrective actions satisfactorily implemented as of the date of this Report.

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