The Real Deal New York

De Blasio’s 421a plan saves some about-to-expire benefits

Proposal would spare some tax breaks awarded pre-2008 in exchange for more affordable units

May 15, 2015 09:00AM

Bill de Blasio and Vicki Been

Bill de Blasio and Vicki Been

As part of Mayor Bill de Blasio’s proposal to reform 421a, which would require the state legislature’s approval, he is offering landlords the opportunity to extend some tax abatements awarded pre-2008 that are about to run out.

The proposal would allow landlords who qualified for 421a prior to 2008, when the abatement was last amended, to continue receiving the tax break on half of a building’s property tax for another 15 years in exchange for the landlord making 5 percent more of that building’s units affordable.

Affordable, in this case, would be defined as affordable to families making up to 130 percent of the area media income, Capital New York reported.

“So we’re getting extended affordability, and one of the prices that we’re also demanding for that is they give 5 percent more of their units as affordable,” said Vicki Been, commissioner of the Department of Housing Preservation and Development.

The de Blasio administration would not comment on how many more affordable units this would create or what the cost to the city in foregone taxes would be. De Blasio revealed his proposal, which would eliminate the 421a benefit for condos, last week.

In Albany, there has been talk of a straight extender of the current 421a tax abatement program, which expires June 15. [Capital NY] — Tess Hofmann