Mayor calls Cuomo’s response to 421a reform “disingenuous”

Governor said last week that Bill de Blasio's proposal is too developer-friendly

TRD New York /
Jun.June 01, 2015 08:00 AM

The 421a tax abatement program is causing some trouble in paradise. Tensions are growing between Mayor Bill de Blasio and Gov. Andrew Cuomo, Capital New York reported. The governor has called de Blasio’s proposal to reform 421a “a giveaway to developers,” while the mayor said that response was “disingenuous.”

“It’s the exact opposite and I think it’s disingenuous of him,” de Blasio told reporters on Saturday, according to Capital. “Obviously the giveaway is that, for decades, the tax credit was given without any qualification.”

Later on that day, the mayor addressed the issue again, Capital reported. “I’ve seen our governor move mountains when he wants to,” the mayor reportedly said. “Here’s a chance for our governor to get something done for our families who need affordable housing. So, it’s time for him to do it, right?”

The mayor’s plans, backed by the Real Estate Board of New York, propose an end to 421a breaks for condo projects as well as a required inclusionary policy for affordable units to be built in buildings receiving the tax breaks.

The plan includes a wage requirement for all workers in subsidized buildings, but there’s no such clause requiring minimum wage for the construction workers building them, which has disappointed the unions.

Cuomo also said he doesn’t expect the mayor’s plans — which also extends the abatement to 35 years from the current 25 — to pass the state Legislature, the website reported. The tax program, as well as the state’s rent regulation laws, are set to expire on June 15.

“The city has a package that is criticized as being too rich to the developers and a giveaway to the developers, and you’re not paying the workers a fair wage,” Cuomo said last week. “That is a very bona fide discussion, and that has to be figured out, or not. And it’s very technical and it’s very controversial.” [Capital NY] — Claire Moses

Related Articles


EB-5 sees investment boost, tensions flare between brokers and StreetEasy: Daily digest

Jay Martin, James Whelan and Joe Strasburg

Rent-pocalypse 2.0: Real estate industry reacts to tenant demands

The purge continues: WeWork’s head of real estate is leaving

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

Governor Andrew Cuomo and Senator James Skoufis (Credit: Getty Images, NY Senate)

Owners of some residential properties can’t hide behind
LLCs anymore

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

Boris Santos, chief of staff to State Sen. Julia Salazar, and Assemblymember Erik Dilan in Bushwick. (Credit: Facebook and iStock)

“The Assembly needs more comrades”: Julia Salazar’s chief of staff to challenge real estate favorite Erik Dilan

Margaret Streicker Porres and 101 West 78th Street (Credit: Linkedin, Corcoran, iStock)

Newcastle Realty was repeatedly accused of violating New York’s old rent laws. Now it says it’s leaving New York because of the new rent law.