421a talks reportedly improving ahead of deadline

Development tax break expires Jan. 15 if real estate lobby, construction unions can't reach deal

New York /
Jan.January 07, 2016 01:40 PM

The clock continues to tick toward the expiration of the 421a tax break on Jan. 15, but negotiations over the abatement’s future between the city’s real estate lobby and its building union interests are reportedly improving.

While talks stalled for months in the fall, the two sides are talking regularly and are scheduled to meet again today. Though the tone of discussions have improved, sources involved in the negotiations reportedly still harbor doubts that a deal will be reached by this month’s deadline.

“There have been more productive conversations,” an anonymous source told Politico. “I think the sites are much closer together than the last time [we] spoke about this. Towards the end of December, there were fruitful conversations.”

The state law governing 421a expired in June, leading to a last minute, end-of-session legislative package that brought a short-term, six-month renewal of the affordable housing tax break.

But Gov. Andrew Cuomo said that any future deal leading to a permanent renewal of the abatement must include some form of prevailing wage requirement for construction workers on projects benefitting from 421a – namely buildings with more than 15 units. [Politico]Rey Mashayekhi


Related Articles

arrow_forward_ios
John Banks
High expectations: A look at John Banks’ 4 years at REBNY
High expectations: A look at John Banks’ 4 years at REBNY
John Banks
John Banks to step down as REBNY president
John Banks to step down as REBNY president
REBNY Awards
Newmark Knight Frank wins REBNY retail award for Alamo Drafthouse deal in FiDi
Newmark Knight Frank wins REBNY retail award for Alamo Drafthouse deal in FiDi
1209 Dekalb Avenue in Brooklyn. (iStock, Kutnicki Bernstein Architects)
Industry suffers setback in 421a class action suit
Industry suffers setback in 421a class action suit
Gov. Andrew Cuomo, Andrea Stewart-Cousins and Carl Heastie (Getty; iStock/Illustration by Kevin Rebong for The Real Deal)
Landlords’ building emissions workaround is dead
Landlords’ building emissions workaround is dead
From left: Assembly member Harvey Epstein, State Sen. Julia Salazar,  MBA's Mike Flood and REBNY's James Whelan (Getty, Anuja Shakya/Whelan, MBA/Flood)
Real estate makes last-minute push to kill proposed preferred equity tax
Real estate makes last-minute push to kill proposed preferred equity tax
Compass' Robert Reffkin and REBNY's James Whelan. (Getty, Whelan ph: Anuja Shakya)
Compass slams REBNY with antitrust suit
Compass slams REBNY with antitrust suit
(iStock)
Broker confidence rebounds after challenging year: REBNY
Broker confidence rebounds after challenging year: REBNY
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...