Removes residential dwelling units that must be affordable to residents at a specific income level from the definition of "construction contracts" for the purposes of certain provisions of the General Business Law.
Summary
This bill amends the General Business Law definition of “construction contract” to exclude certain residential projects that include dwelling units required to be affordable to residents at a specified income level. Under current law, the definition already excludes a range of public works and smaller residential projects, including certain one-, two-, and three-family dwellings and limited-size residential developments. The bill would remove from that definition residential projects that are subject to affordability requirements imposed by statute, regulation, restrictive declaration, or a regulatory agreement with a government entity.
As a result, those affordable housing projects would no longer be treated as “construction contracts” for the purposes of the affected provisions of Article 36-A of the General Business Law, which governs construction contract practices. The practical effect is to change which residential development agreements are covered by those rules, potentially affecting rights and obligations between owners, developers, contractors, and subcontractors on affordable housing projects. The bill takes effect immediately if enacted.
Impact
The bill narrows the statutory definition of “construction contract” in General Business Law § 756 by carving out affordable housing projects with income-restricted units. This would alter the scope of Article 36-A as applied to those projects, meaning certain contract-related protections, requirements, or remedies under that article would no longer apply to qualifying affordable residential developments. It affects private construction and development agreements involving affordable housing, while leaving the existing exclusions for public works and smaller residential projects in place.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available record. Based on the bill text and caption, the measure appears to be a targeted technical change intended to adjust how affordable housing projects are classified under the construction contract law. The absence of recorded opposition or amendments suggests the bill’s immediate context is limited in the materials provided.
Contention
The main point of potential contention is the policy choice to exclude affordable housing projects from the definition of construction contracts. Supporters may view this as a clarification or narrowing that better fits the regulatory structure of subsidized or income-restricted housing, while opponents could argue it removes protections or obligations that should continue to apply to those projects. Another possible issue is whether the exclusion is broad enough to capture all forms of affordability-restricted housing, since it applies to units required to be affordable by law, regulation, restrictive declaration, or regulatory agreement.
Same As
Removes residential dwelling units that must be affordable to residents at a specific income level from the definition of "construction contracts" for the purposes of certain provisions of the General Business Law.
Removes residential dwelling units that must be affordable to residents at a specific income level from the definition of "construction contracts" for the purposes of certain provisions of the General Business Law.
Increases the interest rate for late payments due on construction contracts from one to two percent; includes a change order as part of the definition of construction contract; defines change order; repeals exceptions for lower Manhattan construction contracts.
Increases the interest rate for late payments due on construction contracts from one to two percent; includes a change order as part of the definition of construction contract; defines change order; repeals exceptions for lower Manhattan construction contracts.
Permits the construction of residential buildings that are up to four (4) stories and sixteen (16) dwelling units with a single staircase under certain conditions.