Labor unions lobby to overhaul 421a tax program

Rent regulation laws are set to expire on June 15, unless the State Legislature acts

TRD New York /
May.May 05, 2015 12:05 PM

Labor unions and contractors are lobbying to overhaul the 421a tax abatement program to guarantee higher wages for construction workers and help create more affordable housing.

The campaign, known as Up4NYC, is intended as the start of a discussion about housing laws as the State Legislature will decide what to do with rent stabilization laws that are set to expire on June 15, according to the New York Times.

“It is not acceptable for developers to get a billion-dollar-a-year tax break while paying workers low wages and creating little to no affordable housing,” Paul Fernandes, executive director of the New York City and Vicinity Carpenters Labor Management Corporation, an organization of unions and contractors told the newspaper. “These are public dollars, and we need to demand much better accountability and results.”

Fernandes told the New York Times that he and his allies are looking to reach a middle ground: in return for tax breaks, developers will have to set aside more than 20 percent for affordable units.

Tenant advocates have been strongly opposing the tax abatement program, which is widely used by the city’s developers. The 421-a program provides tax breaks for developers who provide affordable housing as part of their newly constructed buildings. Mayor Bill de Blasio is in favor of stronger rent regulations, the Times reported, and will introduce a legislative proposal next week. [NYT] — Claire Moses 


Related Articles

arrow_forward_ios

All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag

Inwood has stayed affordable for a remarkably long time. That could soon change. (Credit: Wikipedia)

Inwood braces for gentrification

Rent reform is propelling a new wave of New York and California investors to Miami (Credit: iStock)

Rent reform in New York, California propels new wave of multifamily investors to Miami

Developer seeks $40M for Opportunity Zone site in downtown Newark

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

Presidential debate 2020 Night 2: Here’s where these Democratic candidates stand on housing

Mayor Bill de Blasio and Rikers Island (Credit: Getty Images)

Real estate development not coming to Rikers Island, mayor says

Comptroller Scott Stringer (Credit: Getty Images)

Stringer sounds the alarm on the housing affordability crisis in new report

arrow_forward_ios