Is this the year New York’s scaffold law gets reformed?
The conventional wisdom is that when a headline asks a question, the answer tends to be no.
In this case, Gov. Kathy Hochul didn’t include any such legislation in her executive budget. Nor does there seem to be a ton of momentum at the state level to push through changes this year. Plus, it is an election year.
But there’s a lot of attention around how to make it easier to build housing in New York. During last week’s state budget hearing on housing, some housing groups (including the New York Housing Conference and New York Association-Affordable Housing) noted their support of changing the scaffold law to, at the very least, exclude any affordable housing with regulatory agreements from a city or state housing agency.
The scaffold law holds owners and general contractors fully liable for gravity-related injuries on construction sites. Opponents have long argued that it drives up construction costs, while proponents say it is critical to ensuring worker safety.
The Building Trades Employers’ Association, which represents general contractors, estimates that insurance makes up 8 to 10 percent of total construction costs, compared to other states that use a comparative negligence standard (a court determines who was at fault, decreasing an employer’s liability if the employee’s own negligence contributed to the fall) where it represents 2 to 4 percent.
Build More New York, a statewide coalition that formed last year, has its sights set on change at the federal level. A bill proposed by Rep. Nick Langworthy, the Infrastructure Expansion Act, would preempt the scaffold law on projects that receive federal funding, meaning that a comparative negligence standard would apply instead of absolute liability. This would have major implications for housing projects, as it would apply to those receiving federal low-income housing tax credits.
John Faso, who formerly represented New York’s 19th congressional district and is now advising the coalition, proposed similar legislation in 2017. He sees federal preemption as the only way to curb the scaffold law, given the lack of political will in New York.
“The trial lawyers and the building trades have a hammer lock on the state legislature,” he said.
Construction unions have opposed the federal proposal as well. In an op-ed for the Times-Union last year, Building and Construction Trades Council President Gary LaBarbera argued that the bill represented not just an attack on worker protection, but also on state autonomy. He said the scaffold law has been “a beacon of construction site safety and contractor accountability for more than a century.”
Faso said the coalition hopes that the Infrastructure Expansion Act is included in another must-pass legislation. The group has been pushing for the changes to be included in the surface transportation authorization bill, which will replace the current Infrastructure Investment and Jobs Act, which expires in September.
What we’re thinking about: The city held the first rental ripoff hearing last week. Are you planning to attend any of the four remaining events? What did you think of the first one? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: The city’s Department of Records has an interactive map that shows the various honorific street names throughout the city and the history behind them. For example, the corner of West 54th Street and Broadway is also known as “Big Apple Corner.” The spot marks the longtime home of John J. FitzGerald, who popularized the term “Big Apple” in reference to New York City in his horse racing column, “Around the Big Apple,” according to the department’s map.
Elsewhere in New York…
— Mayor Zohran Mamdani tapped tenant attorney Kenny Minaya as the new commissioner of the city’s Department of Small Business Services. Minaya previously worked for Catholic Migration Services and Make the Road New York.
— The City Council is considering a bill that would ban stores from collecting biometric data, Gothamist reports. The measure would prohibit places of “public accommodation,” such as grocery stores, from using biometric technology like facial or voice recognition software.
— The mayor has used the encrypted messaging app Signal to communicate with other elected officials and advisors, Politico reports. The news site confirmed that in at least one instance, he used the app to discuss government business. Former Mayor Eric Adams’ use of encrypted messaging apps drew scrutiny and was featured in the criminal indictment brought against him.
Closing Time
Residential: The top residential deal recorded Monday was $7.5 million for a condominium unit at 56 Leonard Street. The new-construction condo in Tribeca is 2,250 square feet. The Corcoran Group has the listing.
Commercial: The top commercial deal recorded was $79.9 million for a multifamily portfolio in Flatbush. The addresses include 91-95 East 18th Street, 666, 672, 682 and 816 Ocean Boulevard, 280 East 21st Street and 211 Linden Boulevard. The portfolio totals about 375,000 square feet and has 350 units. The seller, Camber Property Group, purchased the portfolio six years ago for $81.6 million, per reports.
New to the Market: The highest price for a residential property hitting the market was $27.5 million for 21 Beekman Place. The Midtown East townhouse is 7,200 square feet. Compass’ Les Meyers and Carl Gambino have the listing.
— Joseph Jungermann
