421-A Replacement Bill Introduced To State Senate
The Independence Party of New York has endorsed a new bill intended to replace the expired 421-a tax abatement, although its future remains uncertain in the face of opposition from unions and state Democrats.
The new bill would require developers who benefit from the tax break to create even more than the 20% of affordable housing called for in the original 421-a, according to the Commercial Observer.
It also includes a prevailing wage clause guaranteeing construction workers be paid at least $21 an hour, and $55 an hour on projects in Manhattan south of 96th Street with more than 300 units by 2020.
The legislation, referred to as 421-aa, was introduced into the State Senate by Republicans today. In support of the bill, a memo was circulated among all 231 state senators and assembly members stressing New York’s pressing need for more affordable housing and highlighting 421-a’s success in getting those projects off the ground.
Roughly half of all affordable housing units created in the last two years in New York were created through 421-a, which lapsed last January after REBNY and the Building and Construction Trades Council of New York were unable to reach an agreement over prevailing wage. (Pictured above are REBNY president John Banks on left alongside Related's Bill Brake and Schwartz Sladkus Reich Greenberg Atlas' Steven Sladkus.)
The topic continues to be contentious, and some state Democrats as well as union officials have said they will not support the new bill in its current form.
“Thank you for giving the workers the minimum wage,” Building and Construction Trades Council of New York president Gary LaBarbera told The Real Deal, in reference to the new bill. “Are they really that out of touch?” [CO]