Labor unions lobby to overhaul 421a tax program

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

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
A rendering of 165 Broome Street (Credit: Handel Architects)
Nonprofit plans affordable housing development near Essex Crossing
Nonprofit plans affordable housing development near Essex Crossing
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
(iStock)
Landlords seek up to 5% rent hike on stabilized apartments
Landlords seek up to 5% rent hike on stabilized apartments
Andrew Yang (Getty)
Does Andrew Yang’s housing plan make sense?
Does Andrew Yang’s housing plan make sense?
The Altana Complex and Waterford CEO John Drachman (Waterford)
Waterford Property venture acquires luxury rental complex from Carmel Partners
Waterford Property venture acquires luxury rental complex from Carmel Partners
Inside the quest to change single-family zoning
Inside the quest to change single-family zoning
Inside the quest to change single-family zoning
Dianne Morales and Phipps Houses in Kips Bay (Dianne Morales, Google Maps)
Mayoral candidate runs away from ex-employer Phipps Houses
Mayoral candidate runs away from ex-employer Phipps Houses
HRI executive director Aaron Carr and 700 West 192nd Street (Google Maps, Facebook)
Brooklyn, Manhattan tenants sue landlords over alleged 421a abuse
Brooklyn, Manhattan tenants sue landlords over alleged 421a abuse
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...