Info via Bloomberg and the New York Post
A new tax program, 485-x, states that large-scale multi-family developments with 100 units or more must pay their workers a wage of $40 an hour. However, 485-x also states that buildings containing a certain number of affordable units can qualify developers for a tax break.
Unfortunately, many developers feel that the tax break and future income from higher unit buildings are not worth spending the extra money on wages for workers. Costs are estimated to rise for developers by about 2% for 100-unit buildings and 20-30% in buildings with 150 units.
This could in part be due to the instability of the economy, making developers feel as though they need to make back their money quickly instead of investing in an unsure economic future.
Regardless of the reasoning, the result is that we have fewer housing units being built during a serious affordability and housing availability crisis in New York.
