Mayor Bill de Blasio is teaming up with the real estate industry to make some changes to the controversial tax abatement program known as 421-a. Zack Fink filed the following report.
New York City's major developers are taking to the airwaves as the debate over renewing a tax abatement program known as 421-a heats up.
Democrats in the Assembly want a prevailing wage requirement for all new developments receiving the subsidy from taxpayers.
"That prevailing wage requirement simply just increases the cost overall of doing it. And there's a real fear, I think a real important concern about the reduction in production that would happen if the 421-a program ended up having a prevailing wage requirement," said Rafael Cestero of the Community Preservation Corporation.
The ad by the Real Estate Board of New York is, in part, a response to an ad from construction trade unions, who say a prevailing wage is about fairness.
"To suggest that you can't have projects that do both, create good jobs and also create affordable housing, is just not even consistent with the mayor's own history," said Paul Fernandes of the Building and Construction Trades Council.
Right now, all new development that qualifies for 421-a must set aside 20 percent of the project for affordable housing. Mayor Bill de Blasio's program increases that up to 30 percent.
Some say rejecting the prevailing wage requirement is inconsistent for the mayor, who travels the country talking about income inequality.
"This is a pretty sacred mission, from my point of view, to really produce affordable housing on a grand scale," de Blasio said. "I think there is a way to do it that accommodates union labor, but not at prevailing wage, so we're trying to find a more balanced approach."
The three big issues that need to get resolved in Albany next month before the end of the legislative session include not only 421-a, but mayoral control of schools and the extension of the rent laws. Hoping to avoid what is known as a "big ugly," where everything gets linked together and passes on the final day of the session, Democrats in the Assembly passed two of the three last week. However, Republicans in the state Senate say all three items still need to be negotiated.