Q&A
Wage packages for construction workers in state vs. city subsidized projects
0:14:52
·
137 sec
Council Member De La Rosa questions the disparity between wage packages for construction workers on state-subsidized versus city-subsidized affordable housing projects. Deputy Commissioner Tigani explains the differences.
- HPD supports a $40 minimum wage compensation package for workers on state-subsidized projects (485x program)
- The difference is attributed to the mixed-income nature of 485x projects, which include market-rate units that can support higher costs
- City-subsidized projects are typically 100% affordable, making it more challenging to support higher wages due to limited revenue
Carmen N. De La Rosa
0:14:52
Try.
0:14:53
HPD testified in September, but you also in your testimony today reinforced this about working closely with the New York State legislation to enact the affordable neighborhoods for New Yorkers also called 485x.
0:15:06
The state tax abatement for affordable housing to include $40 per hour minimum compensation package for construction workers who build projects with more than a 100 units.
0:15:17
If HPD supports a $40 minimum wage compensation package for construction workers on state subsidized affordable housing project, why wouldn't HPD fully support the same $40 per hour wage package for workers who build city subsidized affordable housing projects.
Ahmed Tigani
0:15:33
So I'll start, and I'll ask my colleague to chime in.
0:15:37
So we are very proud of the work that was done to drive up a new standard in Ford at 85x and not tax abatement.
0:15:46
The ability to advance greater worker protections in that program is going to be a huge an important step for New York City.
0:15:55
I will say that one of the biggest differences is that those projects largely are mixed income projects that have a substantial component of market rate rents that allows the income generated to help support greater costs to those projects.
0:16:13
So for our projects, again, we are the gap filler in building an affordability, 100% affordable housing project.
0:16:22
Where the revenue coming in and the lending and the money they're able to bring into the project to allow for those deeply affordable rents, there's still a gap where the public subsidy comes in and makes the project whole.
0:16:36
For those projects within 485x where there is a substantial market component, there is the ability to leverage a different source to allow for something different.
0:16:45
And then just going further down that line, you have to we took a look closely at the type of projects that can support that.
0:16:53
So for projects within higher the possibility for higher income revenue through market rents, Mhmm.
0:17:03
That's where we're able to establish a more a higher wage dealing for certain occupation.
