421a extension could cost city 1,300 affordable units

Tax incentive program could be extended up to one year
June 12, 2015 11:10AM

An extension of the 421a tax abatement program — rather than the adoption of reforms proposed by Mayor Bill de Blasio — could cost New York City roughly 1,300 affordable apartments, according to data from the city’s Independent Budget Office cited by Crain’s.

Gov. Andrew Cuomo said this week that it is “unlikely” that the state legislature will be able to “negotiate a whole new plan” to replace or reform the much-debated tax incentive, reiterating his support for a temporary extender of the program as currently stands.

A yearlong extender of 421a, however, could end up costing the city 1,300 affordable residential units, according to data from the city’s Independent Budget Office. It is unclear how long the program could be extended for, though estimates range from three months to a year, according to Crain’s.

De Blasio’s proposed reforms to the tax abatement have resulted in friction between the him and the governor, and de Blasio recently proposed ending the program altogether if an agreement on reforms could not be reached. [Crain’s]Rey Mashayekhi