The state's 421-a tax break program will expire Friday night after real estate developers and construction labor unions could not reach an agreement on how to reform the law before Friday's deadline.
Losing the tax abatement program will result in the loss of 18,000 newly built affordable rental units over the next four years, according to a city analysis. Without the benefit, developers will instead produce market rate condos, according to the Real Estate Board of New York, the developer group that had been negotiating a deal.
When the program expired in June, Gov. Andrew Cuomo said renewing the abatement — first implemented in the 1970s to spur housing development during a fiscal crisis — must include some form of a prevailing wage requirement for construction workers for buildings with 15 or more units participating in the program.
He gave the Real Estate Board of New York and the Building and Construction Trades Council seven months to hash out an agreement.