PUBLIC TESTIMONY
Testimony by Zachary Steinberg, Senior Vice President of Policy at Real Estate Board of New York (REBNY), on Minimum Wage Standards for City-Supported Construction Projects
2:27:06
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116 sec
Zachary Steinberg from REBNY expresses concerns about the proposed $40 per hour minimum wage standard for city-supported construction projects. He argues that while REBNY supports fair wages, the proposed standard may inhibit project feasibility, reduce affordable housing development, and pose compliance challenges for smaller firms and MWBEs.
- REBNY previously agreed with Mason Tenders District Council on a wage standard starting at $35/hour, rising to $43/hour by 2033 for private mixed-income residential developments.
- The proposed $40/hour standard and compliance regime may significantly increase project costs and reduce overall affordable housing production.
- Steinberg suggests finding ways to reduce compliance obligations and make other improvements to the legislation to balance wage goals with the need for more housing.
Zachary Steinberg
2:27:06
Thank you, Castlemover.
2:27:08
Redneus expressed its support for local legislation that would establish an elevated minimum wage standard for local hiring requirements for city supported construction projects.
2:27:16
Based on this belief, revenue was proud to reach an agreement with the Mason Tenders District Council to establish an elevated minimum compensation standard for projects benefiting from what eventually became the 45 x program.
2:27:26
While it was not what was ultimately enacted into law, Under the Remedy Mason Tenders agreement, all workers on project will be guaranteed a wage and benefit package that began at $35 an hour, eventually rising to $43 an hour by 2033.
2:27:38
Notably, this agreement applied to private contract mixed income residential development not city supported affordable housing that often operates on much tighter margins.
2:27:48
The revenue Mason Tenders agreement recognized that any wage standard must be calibrated so as not to inhibit the ability of a project to move forward.
2:27:55
If a project becomes financially infeasible due to higher regulatory burdens and costs, those same workers will not have jobs, and the city will lose out on the affordable housing it urgently needs.
2:28:05
The $40 per hour standard in this legislation will raise project costs, It will inhibit development of projects that operate with very tight margins, and it will reduce the overall amount of affordable housing for the city can support and limit the ability of the city to create more deeply affordable housing.
2:28:19
In addition, the proposed compliance regime will pose significant challenges for many developers and contractors.
2:28:24
Particularly smaller firms and MWPEs.
2:28:27
Many contractors on these projects are not familiar or equipped to comply with the prevailing wage style record keeping noticing and enforcement requirements included in the proposal.
2:28:35
Given that the legislation imposes a minimum wage rather than a prevailing wage, it would be reasonable to find ways to reduce the significant compliance obligations in the bill.
2:28:43
In addition, the bill could be improved through other changes that are detailed in our written testimony.
2:28:47
With the city already facing a severe housing shortage and the mayor's moonshot goal of 500,000 new units, balancing the goals of this legislation we need for more housing and more housing capital funding is critical.
2:28:57
Remedy looks forward to continue to work with the council of the mayor of administration and all stakeholders on a supporting topic.
2:29:01
Thank you.
