Q&A
Council member inquires about HPD's involvement in wage standard discussions
1:51:38
·
150 sec
Council Member Carmen N. De La Rosa asks about meetings with HPD regarding the wage standard's impact on their portfolio. Oona Adams responds, highlighting challenges in communication with HPD and lack of data transparency.
- HPD has not engaged in substantive negotiations for 8 months
- Transparency issues: HPD withholding wage data and not complying with Local Law 44
- Independent analysis suggests a 2% increase in construction costs for a $40/hour compensation standard
Carmen N. De La Rosa
1:51:38
Thank you so much.
1:51:39
I just have two questions for Oona, and then will go on to the next panel.
1:51:45
But given the significance of the wage standard to HPD's portfolio, have you met with them to discuss potential impacts?
Oona Adams
1:51:53
Thanks so much for asking.
1:51:56
Unfortunately, we did meet with HPD 1.
1:51:59
But then HPD has functionally ignored 8 months of requests for substantive negotiations on the Construction Justice Act.
1:52:07
Despite a nearly veto proof support for this solution in the city council.
1:52:13
They're also withholding basic data, which the city council themselves mandate be made public.
1:52:19
The HPD transparency bill local law 44 is currently 19 months out of date.
1:52:26
Which prevents us from being able to do anything to verify the idea that it would cost $500,000,000 more.
1:52:33
Who knows?
1:52:34
Because the data isn't there.
1:52:39
We have also filed Freedom of Information Act request for the wage data which HVD is required to collect from all of the contractors on these jobs.
1:52:51
Again to say that wage data already has to be submitted.
1:52:56
I believe we filed our first Foya for all of these projects 4 years ago.
1:53:01
And to date, we have only received information on the prevailing wage jobs.
1:53:06
So we have no way to verify how much workers in fact are currently being paid.
1:53:13
HPD has data but hasn't shared it with us.
1:53:17
So we were forced to do our own analysis.
1:53:21
We talked to some not for profit and for profit affordable housing developers and did our own internal analysis and found that a $40 an hour compensation standard would result in a marginal increase to construction costs of approximately 2%.
1:53:39
And this has to do primarily with the stuff that we were talking I was talking about earlier in terms of increased productivity.
1:53:49
Under this scenario, an affordable housing project that is 200,000 square feet would result in roughly a $1,200,000 increase in hard construction costs.
1:53:59
Money which I just want to reiterate would go directly New York City construction workers through the local hire initiative to the communities which need it most.
