The Real Deal New York

Corruption probes slowing 421a, rent control talks: Cuomo

The Governor said that Albany “has a lot going on right now”
April 26, 2015 09:51AM

Federal corruption probes into the practices of state lawmakers are making it difficult for the Legislature to resolve contentious issues — particularly the extension of rent control for New York City, Gov. Andrew Cuomo said.

“If it was a different time in Albany, frankly, and Albany was [in] a little bit more stable situation, I would normally take these negotiations to Albany and try to work it out among the parties,” Cuomo told business leaders at an Association for a Better New York breakfast. “Albany has a lot going on right now, let’s say.”

Cuomo was answering a question regarding the 421-a tax abatement program and rent stabilization, according to the New York Post.

Tenant advocates are fighting to end to 421a, claiming that it benefits developers more than those in need of affordable housing.

“Everyone who has been watching the situation here [in Albany knows] to have these finer negotiations on these delicate points is going to be problematic this year,” Cuomo said. “I’m hoping and asking the parties to work out the disagreements among themselves on desires for modifications. If they can, great.”

Despite the uncertainty, Cuomo has promised to simply extend the current laws for both programs if no compromise can be reached. [NYP]Christopher Cameron

  • Charles Dale

    “Despite the uncertainty, Cuomo has promised to simply extend the current laws for both programs if no compromise can be reached. [NYP] – Christopher Cameron”

    Well I am in favor of the rent control laws so I am glad to hear that.

  • 421a doesn’t benefit developers as much as it benefits sellers that obtain a higher sales price for their sites, much like how the mortgage interest deduction raises the price of homes by how much an expected buyer can afford to pay a higher, but partially tax-deductible mortgage.