Fees for Monitoring Compliance with Employment and Wage Requirements

Adopted Rules: Closed to Comments

Effective Date: 
Wednesday, May 20, 2015

The adopted rule amends certain provisions of the Department of Housing Preservation and Development’s (HPD) rules governing fees for administration of loan programs and certain other municipality-aided projects.  The rule provides for a fee to be collected by HPD for monitoring contracts for compliance with equal employment opportunity and prevailing wage and labor standards. 


EO 50 of 1980 (as amended by Executive Order 94 of 1986, Executive Order 108 of 1986, and Executive Order 159 of 2011)prohibitsentities doing business with New York City from discriminating against any employee, applicant, or supplier.  It requires an entity that receives City funding to submit an employment report prior to contract award.  For HPD housing construction contracts, the project sponsor and prime contractors are among the entities required to submit construction employment reports to HPD’s Labor Monitoring Unit for compliance review.  The $1,400 fee will cover the agency’s costs in processing and reviewing the two submitted reports.


The Federal Davis Bacon Act (40 U.S.C. §3141 et seq.), State Labor Law §§220 and 230, Real Property Tax Law §421-a(8), and New York City Administrative Code §6-109require payment of prevailing wages and compliance with labor standards by contractors.  HPD’s Labor Monitoring Unit reviews payrolls and associated documentation, conducts site visits to gather data on wages, hours of work and other employment conditions, investigates complaints, and cooperates with other labor investigatory agencies like the U.S. Department of Labor.  The $30,000 fee will cover the required cost related to ongoing monitoring and enforcement of these requirements.


HPD has determined that certain programs covered by the equal employment opportunity and prevailing wage laws should be exempt from payment of fees for compliance monitoring.  The exempt programs provide loans or grants to projects for small buildings, buildings that were impacted by Super Storm Sandy, formerly City-owned buildings, or buildings that are under court-ordered administration.  All of these projects have limited financial resources and imposition of the fee is a hardship and impractical.  Therefore, HPD has determined that these programs should be exempt from the proposed compliance monitoring fees.