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The New York City Comptroller recently <a href="https://rules.cityofnewyork.us/wp-content/uploads/2025/12/Office-of-the-Comptroller-Proposed-Rules-re-Affordable-Neighborhoods-for-New-Yorkers-Tax-Incentive-Program.pdf">proposed new rules</a> regarding wage requirements for construction workers at eligible sites under the Affordable Neighborhoods for New Yorkers (ANNY) tax incentive program. A public virtual hearing regarding the proposed rules is set for 10:00 a.m. on Wednesday, January 28, 2026.

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ANNY, enacted by the New York State legislature in April 2024 as Real Property Tax Law Section 485-x, is a tax incentive program intended to encourage the construction or refurbishment of affordable housing units in New York City.

Under the NYC Comptroller’s proposed rules, covered sites in New York City that receive tax exemption benefits from the ANNY program would be required to pay construction employees prevailing wages in accordance with New York Labor Law Section 220 and 220-b. This requirement applies only to covered sites with 100 or more dwelling units and provides that construction employees must be paid at least $40 per hour. Projects with 150 or more dwelling units are permitted to pay the lesser amount of either the hourly wage provided in the rules or a percentage of the greatest rate of prevailing wage and supplements based on the employee’s classification and the zone for the project. All wages are also subject to an annual escalator.

The proposed rules also outline the process to apply for exemptions from the prevailing wage requirements. In particular, eligible sites can request exemption if the site is regulated by a project labor agreement, collective bargaining agreement, or jobsite agreement. Requests for exemption must be submitted to the NYC Comptroller’s office at least five months prior to construction commencing.

Along with the prevailing wage requirements, the proposed rules also set forth a three (3) month notice requirement to the NYC Comptroller before construction is set to commence. The notice must include the location of the site, the commencement date, anticipated completion date, and any labor agreements that regulate the site. There is a six (6) year records retention requirement from the date of completion, and the NYC Comptroller’s Bureau of Labor Law has authority to investigate any alleged prevailing wage violations.

Comments to the proposed rules may be submitted on the <a href="https://rules.cityofnewyork.us/rule/wage-requirements-for-construction-employees/">New York City Rules website</a> by January 28, 2026. The NYC Comptroller’s office will also be holding a <a href="https://msteams.link/9R3T">virtual hearing</a> on that same date at 10:00 a.m. for additional public comment. In the event the rules are finalized as proposed, employers should ensure that all ANNY-covered sites are paying the required prevailing wage and maintaining accurate, up-to-date payroll records.

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New York City Comptroller Proposes New Rules for Certain Construction Projects Under the Affordable Neighborhoods for New Yorkers Tax Incentive Program

New York City Comptroller Proposes New Rules for Certain Construction Projects Under the Affordable Neighborhoods for New Yorkers Tax Incentive Program

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