Real Property Tax Law Section 485-x, also known as the Affordable Neighborhoods for New Yorkers (ANNY) tax incentive program, was established in 2024. It provides an exemption from real property taxes to housing developments that meet certain affordability and wage requirements.
Real Property Tax Law Section 485-x requires that construction employees on an eligible site with 100 units or more be paid a minimum hourly rate, with higher rates for sites with 150 or more units in areas that have been designated as Zone A or Zone B, as set forth in more detail below. These hourly wage rates are subject to an annual escalator of 2.5%.
The Applicant for benefits under § 485-x must post a Worker Notice Poster in a prominent and accessible place for construction employees at the worksite and comply with all relevant record-keeping requirements.
The Comptroller’s Proposed Regulations implementing the construction wage requirements of § 485-x are available here.
All building service employees employed at a site with 30 or more units must be paid prevailing wages and benefits for the duration of the applicable benefit period. The Applicant must submit an annual certification to the Office of the Comptroller.
485-X Construction Wage Rates
| Applicable Date | 100 Units or More | 150 Units or More, Zone A | 150 Units or More, Zone B |
|---|---|---|---|
| 7/1/2024 | $40.00 per hour | The lesser of $72.45 per hour or 65% of the greatest prevailing wage within a classification | The lesser of $63.00 per hour or 60% of the greatest prevailing wage within a classification |
| 7/1/2025 | $41.00 per hour | The lesser of $74.26 per hour or 65% of the greatest prevailing wage within a classification | The lesser of $64.58 per hour or 60% of the greatest prevailing wage within a classification |
| 7/1/2026 | $42.03 per hour | The lesser of $76.12 per hour or 65% of the greatest prevailing wage within a classification | The lesser of $66.19 per hour or 60% of the greatest prevailing wage within a classification |