Gary LaBarbera

Despite New York state’s lack of movement on housing issues this year, Gary LaBarbera and the construction trades have still pushed for prevailing wage standards in Albany, and they’re trying to figure out how to fund affordable housing.

LaBarbera said that the Building and Construction Trades Council wanted to use its pension investment fund on partially affordable housing projects, including 970 Franklin Avenue in Crown Heights. Despite developer Bruce Eichner’s failed attempt to rezone and build another industrial property for 1,500 apartments next door at 960 Franklin, LaBarbera felt that the project at 970 would move forward. The organization is also investing in Fordham Landing, a large mixed-use development in the west Bronx where the first phase is being built as of right. 

“Co-op City was built with pension fund money, so we’re working on using a similar model to that,” said LaBarbera. “We plan to use the strength of our pension funds to build affordable and workforce housing. [These projects] will be built all-union.”

During the 2023 state budget negotiations, he successfully secured project labor agreements and prevailing wage requirements for renewable energy projects funded by carbon offsets. The carbon offset fund — which developers and landlords will be able to pay into to meet emissions standards — could generate up to $5 billion a year for new renewable energy projects in New York. The budget also included additional funding for the union’s pre-apprentice and direct-entry programs, which help New Yorkers land spots in the trades’ competitive apprenticeship programs.  

The labor chief, too, felt that the 421a tax abatement — which helped pave the way for much of New York City’s rental housing over the past two decades — needed to be replaced in some form, whether it was by another tax break or a subsidy. 

“We want labor standards attached to housing initiatives, and the fact of the matter is that for affordable housing, for example, there needs to be some form of subsidy,” said LaBarbera. “The development community, the numbers don’t work for them without subsidy. The raging debate is over what kind of subsidies make sense.”

He added, “Nothing’s been accomplished. The question is what, if anything, will change unless there is a real strong commitment from both houses and the governor that we absolutely must come to a plan. Otherwise nothing will get built, and the prices will only increase.”