Developers and architects are adapting to a new constraint imposed by the 485x tax break, which incentivizes projects under 100 units. This has led to inefficiencies, as developers focus intensively on subdividing larger projects into smaller ones. The practice is criticized for increasing housing costs and circumventing wage standards, as many developers aim to evade the high wage scale associated with larger developments. Gary LaBarbera of the Building and Construction Trades Council expresses concerns about developers prioritizing profit over fair wages for workers, questioning the sustainability of this approach.
Developers are now compelled to subdivide larger projects due to the 99-unit limit imposed by the 485x tax break, resulting in ineffective use of resources.
The legislation has led to a focus on smaller developments that are less productive, causing housing to become more expensive while circumventing necessary wage standards.
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