De Blasio’s 421a reforms would up program’s cost by $2.8B

Proposal would double affordable units over next 10 years at lower cost per unit: Glen

TRD New York /
Jun.June 02, 2015 11:30 AM

Mayor Bill de Blasio’s proposed reforms to the 421a tax abatement would increase the program’s cost by about $2.8 billion, administration officials told City Council members Monday.

The de Blasio administration’s proposal would lengthen the abatement period to 35 years while also expanding affordable housing requirements for developers. The total cost of the program would increase to $9.9 billion over a 45-year life cycle, according to deputy mayor Alicia Glen.

The reforms are projected to subsidize the creation of 25,500 affordable units over the next decade, according to Capital New York, compared to just 12,400 units under an extension of the current 421a program. An extension of the current abatement would cost the city $7.1 billion over a 45-year cycle.

Glen noted that the Mayor’s proposal would make the program more efficient and reduce the program’s “cost per affordable unit” from an average of $573,00 to $391,000.

Glen added that the additional cost would be largely offset by up to $200 million in annual revenues from de Blasio’s proposed “mansion tax,” which would add a 1 percent tax to home sales over $1.75 million. [Capital New York] Rey Mashayekhi


Related Articles

arrow_forward_ios
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag

All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag

205 Park Avenue (Credit: Google Maps)

Developer files plans for mixed-use project facing BQE

Alicia Glen (Credit: Getty Images and iStock)

Former housing czar Alicia Glen might launch a real estate firm

Jay Martin, James Whelan and Joe Strasburg

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

Inwood has stayed affordable for a remarkably long time. That could soon change. (Credit: Wikipedia)

Inwood braces for gentrification

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

Rent reform is propelling a new wave of New York and California investors to Miami (Credit: iStock)

Rent reform in New York, California propels new wave of multifamily investors to Miami

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

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

arrow_forward_ios