The Real Deal New York

Can 421aa survive the NY legislature? ¯\_(ツ)_/¯

As this flowchart shows, it’s not looking great

June 16, 2016 07:00AM
By Kathryn Brenzel and Lexi Pilgrim

Click to enlarge

Click to enlarge

A new bill broke months of relative silence on Monday by proposing 421a 2.0 — but the measure hasn’t moved.

The proposed tax program, dubbed 421aa, was submitted by the State Senate’s Rules Committee late on Monday. The measure is a pretty close relative to the version of the tax break enacted last summer, with a few tweaks involving wages and condominiums that qualify for the program. The bill proposes a minimum wage of $55 per hour for union construction workers on projects south of 96th Street in Manhattan with more than 300 units. The minimum wage for other construction sites would stand at $15 dollar until 2017, eventually increasing to $21 in 2020.

The Real Estate Board of New York has come out in support of the measure, saying that it will create more affordable housing than its predecessors. But union boss Gary LaBarbera has slammed the bill, calling it a sneaky and “offensive” move on the part of Senate Republicans. The bill’s chances of reaching the governor’s desk before June 16 seem relatively slim, especially given Gov. Andrew Cuomo’s staunch position on prevailing wage requirements.

The above flowchart outlines a few possibilities for 421aa’s future. But just a quick note: The chart does not include the last-minute political gymnastics that often play a role in the final hours of the legislative session. So, say, if this measure is being linked to $2 billion currently earmarked for affordable housing — as some legislators have reportedly claimed — or some other behind-closed-doors negotiations get this bill signed, consider those options noted.

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