Prevailing-Wage Concern
Quinn, CLC Discuss Housing Investment

By MEREDITH KOLODNER

City Council Speaker Christine Quinn addressed New York City AFL-CIO Central Labor Council delegates Feb. 21 to press her case about the power of the Council's partnership with organized labor to create affordable housing.

ED OTT: Can't rob Peter to pay Paul.

The delegates, representing public- and private-sector unions throughout the city, applauded the concept originally announced by Ms. Quinn during her Feb. 12 State of the City address. But some building trades members challenged the Speaker about the existing crop of affordable-housing developments that are refusing to use union labor or pay a prevailing wage rate.

Using Pension Funds

CLC Executive Director Ed Ott praised the mayoral hopeful in his introduction to the delegate body, and quipped, "We believe she has a long shelf life."

The CLC would create a non-profit under its auspices that would use union pension funds to help protect affordable housing that is in danger of becoming de-regulated and to build new units.

Ms. Quinn noted that housing for low-income and homeless New Yorkers was still needed, but that moderate-income people were the target of this initiative. "We're talking about a situation where you have a Firefighter and a Teacher," she said, "and together they make maybe $110,000 or $120,000 a year, and they can't stay in Sunnyside or Clinton Hill."

CHRISTINE QUINN: A frank exchange.

While details are still being hammered out, the Speaker said the main focus would be preserving existing rentals and building new ones, although co-ops may also figure into the plan. "We need, among other things, to create a Mitchell-Lama program for the 21st century," she said. "One that is permanent."

Rents Could Skyrocket

Mitchell-Lama housing encompasses rent-regulated apartments originally built for the middle class, which for the most part can jump to market rates after 30 years. Housing advocates, including the AFL-CIO Housing Trust Fund, have been focused on finding ways to maintain the affordability of those units.

Ms. Quinn made the case that the combination of organized labor's influence over pension fund investments and the Council's authority over zoning and tax issues would strengthen both their hands with regard to increasing the amount of affordable housing available in the city. "When we go to the developers together with the resources of the Central Labor Council's non-profit," she told the delegates, "and with the possibility that the Council can do re-zonings, that we can put tax breaks on the table or low-interest loan programs, we really have the opportunity to partner with the developer and actually get something done."

Prevailing Wage Issue

Several building trades officials and delegates were paying close attention to Ms. Quinn's comments, as they are embroiled in a struggle with the Bloomberg administration over re-zoning projects and developments, such as the ones planned at Coney Island and Willet's Point, where companies have refused to pay prevailing wage. The unions have been pushing the city to use its weight to force the developers to make a deal, but have been frustrated by the lack of progress. The Willet's Point development recently was delayed after Councilman Hiram Monserrate refused to support the project in his district due to the lack of a prevailing-wage agreement.

CLC delegate Jimmy McGowan, from Local 638 of the Steamfitters, pressed Ms. Quinn on the issue, and described the difficulty facing his members who are trying to get work and maintain standards.

Ms. Quinn said the Council was in negotiations with the Mayor's Office on the issue and that it was important that the city not be allowed "to get away with saying, well, we're building affordable housing, so we can't afford to pay people anything." She emphasized that she did not think that there would be the same problems with regard to the CLC non-profit.

Unions' Key Role

The Speaker effusively praised the city's unions, thanking them for their willingness to help the city during an economic downturn, in the same way unions had "helped" the city during the fiscal crisis of the 1970s.

"People said we can't have this conversation without going to the Central Labor Council," she said. "I hope people understand how significant the unions are in the minds of folks in the City Council."