421-a reform bill likely to pass

Assembly and Senate leaders have agreed on a 421-a reform bill, and the legislation is expected to pass both houses on Thursday. Under the bill, the 421-a exclusion zone will be extended to include large swaths of upper Manhattan, Brooklyn and Queens. At present, the exclusion zone only applies to Manhattan between 14th and 96th streets. In the areas covered by the law, 20 percent of units in new developments will need to be affordable to a family of four earning $42,000. The bill also mandates that workers at buildings receiving 421-a tax breaks receive a prevailing wage for terms between 15 and 25 years. The bill, which Gov. Spitzer is expected to sign into law after it passes the Legislature, is more far-reaching than the 421-a plan the Bloomberg administration and the City Council agreed to last December. The state’s version of the bill has a larger exemption zone and more affordably priced housing. more [Crain’s]