An ongoing stalemate between New York City real estate developers and building trade unions is complicating state budget negotiations in Albany, where Gov. Kathy Hochul and state lawmakers appear increasingly likely to blow past a key deadline without having a final spending plan in place.
Hochul and legislative leaders are aiming to strike a deal on wide-ranging housing policies as part of a fiscal plan they hope could spur development that boosts the supply of available units and drives down rents. They failed to reach an agreement on housing last year.
So far this year, housing talks have again struggled to get off the ground.
At issue is a key component of Hochul’s housing plan: the revival of an expired, long-term tax break for developers who build housing projects in New York City that include affordable units. It was previously known as 421-a, a reference to the section of the law where the tax break was found.
Hochul punted a critical part of the negotiations to the Real Estate Board of New York — the industry’s biggest lobbying group — and labor unions in January, leaving it up to them to jointly devise a plan for determining the minimum amount workers must be paid on construction jobs that qualify for the tax break.
REBNY and the unions are still negotiating two months later. With one exception, they haven’t been able to reach a deal, throwing a wrench into the broader budget talks and casting significant doubt on whether the governor and lawmakers will be able to pass a spending plan ahead of the beginning of the state’s fiscal year on April 1.
Kevin Elkins, political director of the New York City District Council of Carpenters, one of the unions in the Building and Construction Trades Council of Greater New York, said he isn’t optimistic about the state of negotiations.
“REBNY has rejected every compromise on wage standards out of hand, never offers anything as a counter,” Elkins said. “They’re not serious negotiators. I think they’re…
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