HISTORY The 421?a program was started in 1971, when the economic engine in the City was very different and the public sector felt intervention was needed to stimulate real estate development. By 2006, the real estate market had taken off. Legislators and community groups came together to reform the existing program. They attached mandatory affordable housing provisions so that the program did not exclusively create luxury enclaves. They also attached job standards, assuring that going forward, buildings with over 50 units?where under 50 percent of the units were affordable?would be required to pay their building service workers the prevailing wage in New York City. In the residential services industry, that prevailing rate is tied to Local collective bargaining wins, which means that permanent jobs created through the 421?a program were guaranteed to be family?sustaining jobs offering a package equivalent to a minimum of $18.00 an hour to start, coupled with family health care coverage, training opportunities, a pension, and a 401(k). Enforce 421?0 WIDESPREAD VIOLATIONS 34 38 THESE NONCOMPLIANT BUILDINGS WILL COST THE CITY OVER $360 MILLION IN LOST PROPERTY TAX REVENUE. Enforce 421-a 2 Wages at non-compliant buildings legally required wage no. of buildings 7 4 3 2 3 2 3 3 2 1 1 1 1 hourly wage Lack of health insurance at non-compliant buildings 73% have no health insurance Enforce 421-a 3 Lack of sick days at non-compliant buildings 56% of workers have no sick days A CALL FOR ENFORCEMENT Enforce 421-a 4