421a talks reportedly improving ahead of deadline

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

TRD 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

John Banks

John Banks to step down as REBNY president

REBNY Awards

Newmark Knight Frank wins REBNY retail award for Alamo Drafthouse deal in FiDi

From left: Bruce Molser, David Schechtman, Bob Knakal, David Greenbaum, and Judi Pulice

New York’s real estate bigwigs offer predictions for 2020

Real estate brokers are feeling more positive about the business for the first time since dark clouds started appearing a year ago. (Credit: iStock)

Brokers feeling more upbeat for the first time in a year: REBNY

John Catsimatidis

John Catsimatidis on why he should be mayor

Jim Whelan of REBNY

Jim Whelan talks “playing defense”

REBNY's Jim Whelan (standing) and trade group lawyers

REBNY vs. StreetEasy: The fight for listings in Gotham

arrow_forward_ios
Loading...