Group Advocates for Federal Changes to New York’s Scaffold Law
As New York continues to grapple with its complex construction regulations, a coalition known as Build More New York is advocating for significant changes to the state’s scaffold law. The existing law holds owners and general contractors fully liable for gravity-related injuries on construction sites, a provision that has drawn criticism for increasing construction costs.
During a recent state budget hearing focused on housing, representatives from various housing organizations, including the New York Housing Conference and the New York Association for Affordable Housing, expressed their support for modifying the scaffold law. They propose that affordable housing projects with regulatory agreements from city or state housing agencies be exempt from the law’s stringent liabilities.
The Scaffold Law Under Scrutiny
Critics argue that the scaffold law disproportionately raises construction costs, with estimates from the Building Trades Employers’ Association indicating that insurance expenses account for 8 to 10 percent of total construction costs in New York. In contrast, neighboring states that employ a comparative negligence standard—where a court determines fault and can reduce employer liability if the worker shares in the negligence—see insurance costs averaging between 2 to 4 percent.
Rep. Nick Langworthy has introduced the Infrastructure Expansion Act, which aims to preempt the scaffold law for projects receiving federal funding. This legislative push is crucial as it could allow the comparative negligence standard to apply, potentially easing the financial burden on housing developers and paving the way for more affordable housing projects.
Challenges Ahead for Reform
John Faso, a former New York congressman who is now advising the coalition, emphasizes that federal preemption may be the only viable path to reform, given the current political landscape in New York. “The trial lawyers and the building trades have a hammer lock on the state legislature,” Faso stated, reflecting the strong opposition from construction unions against the proposed changes.
Unions argue that the scaffold law serves as a critical safeguard for worker safety and accountability. In a recent op-ed, Gary LaBarbera, president of the Building and Construction Trades Council, called the law “a beacon of construction site safety and contractor accountability for more than a century.”
Next Steps in the Legislative Process
With the Infrastructure Expansion Act introduced, Build More New York is actively seeking to include it in must-pass legislation. The coalition is particularly focused on incorporating the changes into the upcoming surface transportation authorization bill, which will replace the Infrastructure Investment and Jobs Act set to expire in September.
As discussions around construction and housing intensify, the coalition’s efforts reflect a broader push to streamline regulations that may hinder the development of affordable housing solutions in New York. Advocates are hopeful that federal intervention may provide the necessary framework to facilitate these much-needed reforms.
In the meantime, New York City continues to address various housing issues. Recent events include public hearings on rental practices, demonstrating a proactive approach to tackling the city’s housing challenges. Stakeholders in the real estate sector are encouraged to stay engaged and informed about these developments.
Additional Developments in New York
Several noteworthy actions were taken in New York this week:
- Mayor Zohran Mamdani appointed tenant attorney Kenny Minaya as the new commissioner of the city’s Department of Modest Business Services.
- The City Council is reviewing a bill to ban stores from collecting biometric data, which would limit the apply of technologies such as facial recognition in grocery stores and other public accommodations.
- Reports indicate that Mayor Mamdani is using the encrypted messaging app Signal for discussions with officials, a practice that has raised concerns following the scrutiny faced by former Mayor Eric Adams over similar communications.
Closing Time
Recently, the real estate market has seen significant transactions. The highest residential sale recorded was a $7.5 million condominium unit at 56 Leonard Street in Tribeca, covering 2,250 square feet. Meanwhile, the top commercial deal involved a multifamily portfolio in Flatbush, which sold for $79.9 million. This portfolio includes numerous properties totaling around 375,000 square feet and 350 units.
As the discussions around the scaffold law and housing regulations unfold, the future of construction safety and affordability in New York remains a critical topic for stakeholders and residents alike. The push for reform illustrates the ongoing debate about balancing worker safety with the need for accessible housing solutions.
