"They put wages in competition, so wages came down," Hughes said. "If we are going to use our tax dollars to subsidize minimum wage jobs, there's something wrong."

Hughes said nonprofit agencies have attracted out-of-state contractors who offer a lower price through the use of nonunion labor, taking jobs away from New Yorkers. He also noted the "I'' in IDA is for industry, and shouldn't be used to create jobs in nonprofit agencies.

"I sympathize with the nonprofits, but this is an economic development tool," Hughes said.

About $300 million in nursing home and senior residence projects alone are on hold, according to the New York Association of Homes & Services for the Aging.

"Local not-for-profits are not the cause of the controversy," said Carl Young of the nonprofit nursing homes association. "What will happen is that needed senior facilities will go unbuilt, impacting access to services."

"Construction jobs will not be created, nor will any ongoing jobs be created or preserved by these unrealized projects," Young said. "In the end, New York will fall farther behind other states in the development of modern senior housing and care facilities, which will drive even more of our seniors to bordering states like New Jersey and Pennsylvania where they can more readily find the options they desire."

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On the Net:

http://www.state.ny.us

www.nysaflcio.org

www.nysedc.org

www.nyahsa.org