Relates to prevailing wage and extending certain exemptions for new multiple dwellings

Title of bill

An act to amend the labor law, in relation to applying the prevailing wage laws to certain projects on privately owned property; and to amend the real property tax law, in relation to extending certain exemptions for new multiple dwellings

Purpose

This bill would extend the provisions of section 421-a of the real property tax law an additional three years and apply the prevailing wage laws on any project of this type.

Summary of provisions

Section one creates a standard of public work for the purposes of contracts of building construction projects receiving benefits under section 421-a of the real property tax law.

Sections two and three extends the provisions of section 421-a of the real property tax law until June 15th, 2018, provided that such a multiple dwelling receives its first temporary or permanent certificate of occupancy covering all residential areas on or before December 31, 2020.

Section four sets the effective date.

Justification

Public works construction projects are required by New York State Labor Law to apply prevailing wages and "supplemental benefits." This bill would apply the law to certain larger, primarily upper-income residential projects with more than 50 units that receive public funds or financial assistance. This legislation does not apply to primarily affordable housing projects of any size. This legislation also does not apply to residential projects involving 50 or less units.

Independent research conducted by respected economists and universities have consistently found that prevailing wage requirements:

*Promote training, skill and productivity, which improves quality and reduces costs.

*Minimize safety-net costs to taxpayers by providing healthcare and other benefits through employment.

*Reduce injuries and workers' compensation costs. *Increase local workforce participation.

Applying prevailing wage requirements to larger, primarily upper-income residential projects that are partially subsidized by taxpayers will assure that the economic benefits of these projects do not only serve a limited number of affluent interests, but serve the intended purpose of providing affordable housing as well as economic opportunity to workers who earn good wages and spur local economic multipliers that maximize the positive effect of the public subsidies. Additionally, applying prevailing wage requirements to these publicly-subsidized projects should discourage situations where good developers and contractors that choose to treat their workers well are put at a disadvantage against developers and contractors that do not.

Legislative history

This is a new bill.

Fiscal implications

None to the state.

Effective date

This bill would take effect immediately.