AGENCY TESTIMONY
Potential consequences of new wage requirements on affordable housing
0:07:58
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66 sec
New wage requirements could force HPD to make difficult choices, potentially reducing the number of affordable homes built or preserving fewer deeply affordable rental units. These requirements might also impact progress on environmental goals and fair housing initiatives, and could deter developers and contractors from participating in subsidized programs.
- Potential reduction in the number or affordability of housing units produced
- Possible impact on environmental and fair housing goals
- Risk of deterring developers and contractors, especially smaller and MWBE enterprises
Ahmed Tigani
0:07:58
Potentially significantly reducing the number of affordable homes we can provide or build or we would have to build fewer deeply affordable rental units or fewer homeownership units because these are the 2 most expensive types of housing we build.
0:08:13
Increased cost to this level, so written the progress we've made on greening our pipeline and building in limited affordable areas sorry, and building in our limited affordability areas.
0:08:27
To advance our fair housing goals.
0:08:29
New wage requirements can be the difference between some projects being financially feasible versus infeasible.
0:08:35
They made skirted would be developers and owners, from participating in our subsidized project programs, limiting our pool of experienced partners, and preventing new and smaller developers, general contractors and subcontractors from entering the field, such as including nonprofits, and MWBE Enterprises.
0:08:57
Wage requirements will force us to make difficult trade offs in a constrained capital resource environment as we fight an affordability crisis.
