New York builders, contractors, and affordable housing experts expressed overall support for Governor Kathy Hochul’s State of the State housing proposals on Wednesday. However, they are urging additional policy changes to address the state’s housing supply challenges, including the repeal of the almost 170-year-old scaffolding law.
In her State of the State address on Tuesday, Governor Hochul outlined plans to enhance affordable housing, but stakeholders feel a critical housing proposal is absent: the repeal of the Scaffold Law. Mike Elmendorf, President and CEO of the Associated General Contractors of New York State, emphasized that this law, dating back to 1885, significantly raises construction costs without enhancing safety.
The Scaffold Law holds contractors and property owners liable for damages in elevation-related accidents on job sites, constituting around 10% of construction costs in the state. Critics argue it creates a major obstacle to building new units and has faced scrutiny for contributing to fraudulent claims.
Jolie Milstein, President and CEO of the state Association for Affordable Housing, supports Hochul’s proposal to make it illegal for insurance providers to refuse coverage for affordable housing or charge higher premiums. She highlighted this as a crucial step to address rising costs.
Hochul’s additional proposals include mandating state agencies to identify state properties suitable for conversion into new housing units, such as former prisons. Brian Sampson, President of the Empire State Chapter of Associated Builders & Contractors, suggests cleaning up or remediating former prison sites before private developers engage, emphasizing its potential success compared to presenting undeveloped sites.
While progressive Democrats have differing priorities on tenant protections, there is an intention to collaborate. Senate Housing Committee Chair Brian Kavanagh is advocating for a robust rental assistance program in the budget to compensate property owners in cases of tenant non-payment and eviction avoidance.
Despite potential disagreements on priorities, lawmakers express a commitment to working together and avoid going home empty-handed. Sen. Zellnor Myrie, a Brooklyn Democrat, emphasizes a spirit of partnership for achieving the best outcomes for New Yorkers.