The Real Deal New York

421a extension a “real threat” to affordable housing: Glen

Deputy mayor estimates first-year mansion tax revenues of $180M to $200M
June 01, 2015 01:25PM

The existing 421a tax benefit program “simply does not produce enough affordable housing to justify its expense,” Deputy Mayor for Housing and Economic Development Alica Glen told the New York City Council Monday, labeling a “straight extender” of the program as “a real threat” to affordable housing in the city.

Glen and Vicki Been, commissioner of the city’s Department of Housing Preservation and Development, spoke before the council’s Committee on Housing and Buildings on Monday morning at an oversight hearing on Mayor Bill de Blasio’s proposed amendments to 421a and existing rent regulations.

Citing “an unprecedented affordable housing crisis in the city,” Glen also spoke of the administration’s plan to eliminate 421a’s Geographic Exclusion Areas – stressing “no more tax breaks anywhere in New York City without building affordable housing everywhere,” according to Capital New York.

Been said the Mayor’s proposed reforms for the program would create 25,500 units of affordable housing in the next 10 years, compared to 12,400 units under the current program.”

De Blasio’s proposed “mansion tax” was also discussed, with Glen promising that revenue from the tax would go into a “lock box” for affordable housing development.

Glen estimated project revenues from the “mansion tax” proposal, which would add a 1 percent tax to home sales over $1.75 million and a 1.5 percent tax to home sales over $5 million, at between $180 million and $200 million in the first year. [Capital New York] — Rey Mashayekhi