NYU’s Furman Center floats new tax abatement for affordable housing

Study finds 27 percent drop in low-income affordable units since 2002

TRD New York /
Jun.June 11, 2015 06:00 PM

New York University’s Furman Center for Real Estate and Urban Policy has suggested exploring the creation of a new tax abatement program meant to preserve affordable housing supply in the city.

A study by the Furman Center found that the number of apartments affordable to low-income New Yorkers has fallen 27 percent since 2002 – a loss of nearly 240,000 units. The report also noted that around 97,000 of those apartments received no city subsidies, a point used to suggest the possibility of a new tax incentive to preserve the affordability of the city’s existing housing stock, according to Capital New York.

The degree to which a landlord would benefit from such an abatement would depend on the neighborhood their property is located it. The faster a neighborhood’s rent growth, the less beneficial such a program would be for landlords.

Mayor Bill de Blasio recently proposed an end to the current 421a tax break if the state legislature is unable to agree on reforms to the program later this month. [Capital NY]Rey Mashayekhi


Related Article

arrow_forward_ios

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

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

Senator Brad Hoylman and Billionaires' Row (Credit: StreetEasy, NY Senate)

Pied-à-terre tax to make a return in Albany, lawmakers say

From left: New York Governor Andrew Cuomo, New York State senator James Sanders Jr., and New York City Mayor Bill de Blasio (Credit: Getty Images, iStock, and NY Senate)

“This program will either be a boom or a bust:” State senator has plans to redesign Opportunity Zones

212 Fifth Avenue and Jeff Bezos (Credit: StreetEasy and Getty Images)

June was the best month ever for New York’s luxury market. July is another story.

Developer seeks $40M for Opportunity Zone site in downtown Newark

Tuscany, Italy (Credit: iStock)

Benvenuto! Why the number of high-net-worth individuals applying for Italian residency may spike

(Credit: iStock)

For one month, Manhattan’s resi market returned to glory. Why it won’t continue.

arrow_forward_ios