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Adopted Rules: Closed to Comments

Adopted Rules Content: 

DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT 

Notice of Adoption of Rules 

Notice is hereby given that pursuant to the authority vested in the Commissioner of the Department of Housing Preservation and Development (HPD) pursuant to Section 1802 of the City Charter and Section 421-a of the New York State Real Property Tax Law and in accordance with Section 1043 of the City Charter, HPD is adopting amendments to chapter 50 to title 28 of the Rules of the City of New York to implement changes to the prevailing wage requirements for building service employees in buildings receiving tax benefits under New York State Real Property Tax Law section 421-a (the “421-a Statute”) enacted by Chapter 20 of the Laws of 2015 and Chapter 59 of the Laws of 2017 and to the minimum average hourly wage requirements for construction workers for certain projects in accordance with subdivision 16 of the 421-a Statute. 

A notice of proposed rulemaking was published in the City Record on October 15, 2019.  A public hearing was held on November 19, 2019. 

Statement of Basis and Purpose 

Section 421-a of the Real Property Tax Law (“421-a Statute”) provides real property tax exemptions for eligible new multiple dwellings. In New York City, HPD determines eligibility for these exemptions and is responsible for ensuring that applicants for the exemption comply with the exemption’s eligibility requirements, including the requirement that the applicant’s building service employees receive a prevailing wage. 

Chapter 20 of the Laws of 2015 amended the 421-a Statute to add enforcement oversight over the building service employees’ prevailing wage requirements by designating enforcement authority to the fiscal officer which, in New York City, is the Comptroller. Chapter 20 of the Laws of 2015 also articulated the fiscal officer’s enforcement powers, which include conducting investigations to determine the prevailing wage for building service employees, holding related hearings, and issuing rules necessary for the proper execution of the duties, responsibilities, and powers conferred upon the fiscal officer by Chapter 20. 

Chapter 59 of the Laws of 2017 amended RPTL Section 421-a(16) and provided for Affordable New York Housing Program tax exemption benefits for buildings that commenced construction after December 31, 2015, and on or before June 15, 2022, and who completed construction no later than June 15, 2026.  Chapter 59 of the Laws of 2017 requires compliance with the prevailing wage requirements for building service workers and provides enforcement authority to the New York City Comptroller.  RPTL Section 421-a(16) provides that eligible multiple dwellings containing less than thirty dwelling units are exempt from the requirement.  For an eligible multiple dwelling receiving benefits pursuant to RPTL Section 421-a(16) to meet the affordability exemption from the building service workers prevailing wage requirements, all of the dwelling units must be affordable housing units and at least 50%, upon initial rental and subsequent rentals following a vacancy, must be affordable to and restricted to occupancy by individuals or families at or below 125% of Area Median Income.  

Chapter 59 of the Laws of 2017 also provided that in addition to the other requirements provided in subdivision 16 of the 421-a Statute, rental projects with 300 or more dwelling units that are located in portions of Manhattan, Queens and Brooklyn must pay construction workers a minimum average hourly wage.  The Comptroller also was given enforcement authority with respect to these minimum average hourly wage requirements for construction workers. 

Chapter 50 of Title 28 of the Rules of the City of New York governs building service worker prevailing wage requirements and construction workers minimum average hourly wage requirements in certain buildings receiving benefits pursuant to the 421-a Statute. 

HPD’s rule amendments authorize the imposition of civil penalties for violations of the prevailing wage and minimum average hourly wage requirements.  The civil penalty cannot be more than 25% of either (a) the prevailing wage underpayment, or (b) the differential between the wages set forth in the contractor’s certified payroll report and the actual wages paid.  The civil penalty shall be assessed based upon such factors as size and good faith of applicant, contractor or subcontractor, as relevant, the gravity of the violation, the violation history and the failure to comply with bookkeeping and other non-wage requirements. 

The rule amendments also amend the definition of “Owner” in the rules to track Labor Law Article 9 and ensure that the definition covers any entity that is employing building service workers for work that extends beyond such entity’s individual residential or commercial unit.  Finally, the rule amendments make some technical amendments to Chapter 50.  

HPD’s authority for these rules is found in sections 1043 and 1802 of the New York City Charter and section 421-a of the Real Property Tax Law.

Effective Date: 
Sun, 03/01/2020

Proposed Rules: Closed to Comments

Agency:
Comment By: 
Tuesday, November 19, 2019
Proposed Rules Content: 

HPD’s proposed rule amendments authorize the imposition of civil penalties for violations of the prevailing wage and minimum average hourly wage requirements. The civil penalty cannot be more than 25% of either (a) the prevailing wage underpayment, or (b) the differential between the wages set forth in the contractor’s certified payroll report and the actual wages paid. The civil penalty shall be assessed based upon such factors as size and good faith of applicant, contractor or subcontractor, as relevant, the gravity of the violation, the violation history and the failure to comply with bookkeeping and other non-wage requirements.The proposed rule amendments also amend the definition of “Owner” and make some technical amendments to Chapter 50.

Subject: 

RPTL Section 421-a Prevailing Wage Rule Amendments

Location: 
HPD
100 Gold Street 9th Floor Room 9P10
New York, NY 10038
Contact: 

Meilan Chiu, Director of Operations and Policy Analysis, 100 Gold Street, Room 9-Z2, New York, New York 10038

Adopted Rules: Closed to Comments

Adopted Rules Content: 

Statement of Basis and Purpose

 

The rule amends portions of Title 1 of the Rules of the City of New York (RCNY) Section 102-04 to ensure that the specified civil penalties conform with Local Laws 156 and 158 of 2017 with regard to penalties related to work without a permit.

The Department of Buildings’ authority for this rule is found in sections 643 and 1043 of the New York City Charter, and sections 28-213.1.1, 28-213.1.2 and 28-213.6 of the New York City Administrative Code.

 

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Effective Date: 
Fri, 02/15/2019

Proposed Rules: Closed to Comments

Agency:
Comment By: 
Monday, November 26, 2018
Proposed Rules Content: 

Statement of Basis and Purpose

 

The proposed rule amends portions of Title 1 of the Rules of the City of New York (RCNY) Section 102-04 to ensure that the specified civil penalties conform with Local Laws 156 and 158 of 2017 with regard to penalties related to work without a permit.

The Department of Buildings’ authority for this rule is found in sections 643 and 1043 of the New York City Charter, and sections 28-213.1.1, 28-213.1.2 and 28-213.6 of the New York City Administrative Code.


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Location: 
Spector Hall, 1st floor
22 Reade Street
New York, NY 10007
Contact: 

No contact

Download Copy of Proposed Rule (.pdf): 

Adopted Rules: Closed to Comments

Adopted Rules Content: 

Statement of Basis and Purpose of Regulations

Various state and local laws vest the New York City Comptroller with authority to set prevailing wage and supplement rates and to enforce prevailing wage and living wage laws by conducting investigations and hearings and issuing reports with recommendations or orders, depending on the provisions of the various laws.  Over the years, as additional authority has been given to the Comptroller in this regard, it has become necessary and appropriate to update the Comptroller’s procedural rules. The laws that vest authority in the Comptroller are detailed below.

·       New York state labor law article eight requires payment of prevailing wages and supplements to construction workers on New York city public works projects.

·       New York state labor law article nine requires payment of prevailing wages and supplements to building service employees on building service contracts with city agencies.

·       New York state real property tax law sections 421-a (8), (16)(h), and 17(g) require payment of prevailing wages and supplements to building service employees in certain buildings that receive real estate tax exemptions under that law. New York state real property tax law section 421-a (16)(c) requires payment of an average minimum hourly wage to construction workers on certain projects that are entitled to real estate tax exemptions under that law. 

·       New York city administrative code section 6-109 requires payment of prevailing wages and supplements to workers on certain service contracts with city agencies and requires payment of living wages and supplements to workers on certain service contracts with city agencies.

·       New York city administrative code section 19-142 requires payment of prevailing wages and supplements to workers on New York city street excavations.

These regulations set forth a clear and uniform procedure for setting prevailing wage and supplement rates, conducting investigations and hearings and issuing recommendations or orders in cases brought under the above-mentioned laws. The comprehensiveness of the rules provides enhanced guidance to employers, employees, and building owners covered by these laws.

Section 1 amends the heading of chapter 2 of title 44 of the rules of the city of New York to clarify that the rules are inclusive of Comptroller activity under various prevailing wage laws, in addition to the labor law.

Section 2 amends section 2-01 of chapter 2 of title 44 to expand the description of applicable prevailing wage laws.  Section 3 repeals and replaces section 2-02 of chapter 2 of title 44 to address the need for definitions of additional terms.

Section 4 repeals and replaces section 2-03 of chapter 2 of title 44 to set forth the Comptroller’s procedures for determining Prevailing Wage and Supplements and how the determinations may be challenged.

Section 5 repeals and replaces section 2-04 of chapter 2 of title 44 to explain the extent of the obligation to pay prevailing wages and supplements, and record-keeping mandates for covered employers.

Section 6 repeals and replaces section 2-05 of chapter 2 of title 44 to explain how prevailing wage compliance investigations of covered employers are commenced, the look-back period, and the process and resolution of such investigations. The new section 2-05 now includes the parameters for penalties that may be assessed in a settlement with a covered employer in which the violation was committed by a subcontractor.

Section 7 amends chapter 2 of title 44 to add a new section 2-06 regarding prevailing wage hearings, and the interactions between the Comptroller, other agencies, and the office of administrative trials and hearings.

Section 8 renumbers chapters 3 and 4 of title 44, and adds a new heading for a new chapter 3 regarding the Comptroller’s procedure for enforcing living wage and minimum average hourly wage laws.

Section 9 adds a new section 3-01 of chapter 3 of title 44 to describe the applicable living wage and minimum average hourly wage laws.  Section 10 adds a new section 3-02 of chapter 3 of title 44 to define additional terms.

Section 11 adds a new section 3-03 of chapter 3 of title 44 to explain which records covered employers and independent monitors must maintain and provide to the Comptroller.  Section 12 adds a new section 3-04 of chapter 3 of title 44 to explain how living wage and minimum average hourly wage compliance investigations of covered employers are commenced, the look-back period, and the process and resolution of such investigations.

Section 13 adds a new section 3-05 of chapter 3 of title 44 to describe living wage and minimum average hourly wage hearings, and the interactions between the Comptroller, other agencies, and the office of administrative trials and hearings.

Effective Date: 
Sun, 07/29/2018