New York City's building trades and developers could not reach an agreement by the January 15 deadline to set prevailing wages on residential construction in order to continue the city's 421-a tax abatement program. Therefore, the program has been "suspended" until an agreement can be reached.
Without the program, 100% affordable buildings and high end condos will still be built, but everything in between may be more challenging.
Developers say that without a 421-a program, or a similar option, developers can't build multi-family rental housing with a below-market component.
On the construction side, they believe developers receiving public funds have a responsibility to pay good wages with benefits and ensure safe worksites, according to to Building Trades Council President Gary LaBarber.
It's possible the legislature will move quickly to enact a stop gap measure, but it's also possible lawmakers will wait until after re-election to act on the subject.
(more on the failure to reach an agreement on the 421-a program...)
