Incorporated into the 2024 state budget is the 485-x tax abatement program, aimed at incentivizing developers to build new housing, provided that a portion of units are affordable. While this law includes much better labor standards for construction of projects that will utilize the tax break than its predecessor, 421-a, did, there remain deficiencies that we believe must be addressed. Most significantly, the areas in which a family-sustaining wage standard currently applies exclude neighborhoods that are poised to see major construction over the next few years, such as Jamaica, the Bronx, and upper Manhattan.
The Jobs and Housing Act, introduced by Senator Jessica Ramos, would set aside a $1 Billion fund that developers could access to build affordable housing, provided they have a history of hiring from apprenticeship programs, commit to paying construction workers prevailing wage, and enter into Project Labor Agreements.
Project Labor Agreements are comprehensive agreements between a public entity/developer and a jurisdictional Building Trades Council that set requirements for a building project. PLAs save money by guaranteeing no strikes or picketing, that correct wages are paid, and that unscrupulous contractors won’t victimize the project. PLAs guarantee unions will work together so that the project is of a higher quality, finished on or before schedule, uses community labor, and is often under budget. The PLA may also allow that a certain percentage of the workforce not come from the union hiring hall.
Apprenticeship programs are essential to the construction industry, for they are the most common way for individuals to become acclimated, educated, and trained to work safely and efficiently in the field. It is a free alternative to college and provides a direct pathway to the middle class. Apprentices are paid a predetermined wage and benefits for all of their on-the-job training and are the only individuals legally allowed to work for a rate below the prevailing wage on public projects.
