NYHC opposes two bills that have been introduced in the State Legislature this session to establish a new requirement for prevailing wages on construction projects developed with public subsidies.
A1261/S1947-Bronson/Ramos- Prevailing wages for all construction workers on City-funded development projects, with the exception of housing where 75%+ of building is 60% or below AMI. Annual impact: $875 million in additional subsidy OR lose 9,250 units.
A1915/S1948-Crespo/Ramos- Prevailing wages for all construction workers on City-funded development projects financed by HDC or EDC and also on projects with 300+ units or $15m public subsidy, or sale of City-owned property/air rights. Annual impact: $663 million in additional subsidy OR lose 6,875 units.
Since there is no associated budget increase with either of the proposals in the State legislature, a new prevailing wage requirement will force a difficult trade-off between higher wages for some construction workers or fewer affordable housing units produced annually. A1261/S1947 would more than double the need for capital subsidies OR cut production by almost 40%.
Check out our new 1-pager on the impact of these prevailing wage bills on affordable housing preservation and development in New York City.