As predicted, building trades and developers in New York City could not agree by Jan. 15 on a deal to set prevailing wages on residential construction to continue the city’s 421-a tax abatement program—a key catalyst for affordable housing to be built.
Talks between the Building and Construction Trades Council and the Real Estate Board of New York had been ongoing since last summer, when the 421-a incentive program expired, and was given a short term extension so a new permanent deal could be crafted that would stay in effect through June 2019. The incentive program was set to end if there was no deal by Jan. 15.