Wage Issues in 421-a Properties: Prevailing Wage Requirements for Building Service Employees and Minimum Average Hourly Wage Requirements for Construction Workers Key information for developers, owners, purchasers and lenders involved with NYC residential properties receiving property tax exemption benefits under NYS Real Property Tax Law Section 421-a (“421-a”).
Overview of 421-a Wage Requirements: 421-a provides a signicant property tax exemption for up to 53 e y ars whihc is e k y to project underwriting. This memo is intended to provide a high-level overview of 421a properties whihc are subject to: (1) strict requirements relating to payment of prevailing wages (“Prevailing Wages”) for Building Service Emploe y es; and (2) e c rtain new and large properties also subject to minimum average hourly wage W (“MAH ”) requirements for o C nstruction Workers (Prevailing Wage requirements and W MAH requirements are o c lectively referred to as “Wage Requirements”). Monitoring and enforcement of Wage Requirements is vested in s C’NY o C mptroller, Cs ’NY Department of Housing Preservation & Development (“HP”)D and with the New o Y rk State tA torney General. R&E has extensive experience with Wage Requirements and stands ready to assist NYC property owners, managers, and other stakeholders with these issues.
PREPARED BY:
Daniel M. Bernstein, s E q. Member and Leader of Tax Incentives & Affordable Housing Department dbernstein@rosenbergestis.com | (212) 51-1257 Rosenberg & Estis, P.C.