Workers claim developers with 421-A tax breaks failed to meet wage rules

Long Island City's L Haus, the Arias in Park Slope and the Georgica building on the Upper East Side are in union’s crosshairs

TRD New York /
Apr.April 17, 2013 03:00 PM

Service workers at a number of large New York City residential projects have alleged that they did not receive wages they are guaranteed under the city’s 421-A tax abatement program, the Wall Street Journal reported.

Doormen and porters at buildings such as Long Island City’s L Haus, the Arias in Park Slope and the Georgica building on the Upper East Side said they have not been paid the $22 per hour they are guaranteed by law. Union 32BJ SEIU is attempting to organize the workers (most of whom are not members of the union) and will hold a rally tonight at the Arias, according to a press release received by The Real Deal.

Workers at the Arias claim they were fired from their positions after attempting to form their own union to lobby for fair wages.

More than 90 buildings in the city participate in the 421-a tax exemption program, according to 32BJ. Around 600 workers are affected by the program, which grants buildings significant tax exemptions in exchange for affordable housing and prevailing wages and benefits for the buildings’ service workers, the union said.

Robert Kaliner, the developer of the Georgica, denied that the building had not complied with wage requirements. [WSJ]Katherine Clarke

Related Articles

Jay Martin, James Whelan and Joe Strasburg

Rent-pocalypse 2.0: Real estate industry reacts to tenant demands

The issue came to light after some owners realized they were incorrectly billed in June (Credit: iStock)

“A big, big, big success,” NYC Finance Department says of new system that overcharged building owners on property tax

With the elimination of vacancy decontrol, landlords can't deregulate units in buildings receiving 421a until the tax break expires (Credit: iStock)

Collateral damage? Real estate sounds alarm on rent regs’ impact on condos, 421a

100 Riverside Boulevard is one property whose tax abatements are ending

With 421a ending, more condo owners are selling their apartments

Brooklyn developer overcharged tenants by more than $1M at new 421a building: lawsuit

For developers who love the old 421a, stalled construction sites are ripe for the picking

New York has lost more than 400K affordable apartments since 2005: comptroller’s report

When 421a was in limbo, developers turned to this tax exemption