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

TRD New York /
May.May 15, 2015 09:00 AM

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


Related Articles

arrow_forward_ios
When Bill de Blasio announced the end of his campaign, the industry reacted largely with relief but not surprise (Credit: Getty Images and Pixabay)

De Blasio’s campaign is dead, and real estate is happy

Gary Barnett says luxury market is crowded, WeWork IPO woes continue: Daily Digest

The issue came to light after some owners realized they were incorrectly billed in June (Credit: iStock)

“A big, big, big success,” NYC Finance Department says of new system that overcharged building owners on property tax

The blackout impacted a 42-block stretch of Manhattan between the Hudson River and Fifth Avenue (Credit: Getty Images)

Con Ed still searching for answers in Manhattan blackout

Mayor Bill de Blasio and Rikers Island (Credit: Getty Images)

Real estate development not coming to Rikers Island, mayor says

With the elimination of vacancy decontrol, landlords can't deregulate units in buildings receiving 421a until the tax break expires (Credit: iStock)

Collateral damage? Real estate sounds alarm on rent regs’ impact on condos, 421a

100 Riverside Boulevard is one property whose tax abatements are ending

With 421a ending, more condo owners are selling their apartments

Mayor Bill de Blasio and Frank Carone (Credit: Getty Images)

City tapped De Blasio donor to take over foreclosed properties

arrow_forward_ios