Housing Committee chair offers plan aimed at filling the 421a void

Keith Wright’s proposal would grant outright subsidies rather than tax breaks

New York /
Mar.March 17, 2016 09:07 AM

Keith Wright, Chairman of the Assembly’s Housing Committee, says he’s offered the first major proposal to replace the expired 421a tax abatement program.

His bill would radically alter the program’s former structure, funding affordable housing through direct developer subsidies of up to $100,000 per unit from the city budget, rather than a 25-year tax property tax break.

Wright estimates the reconstituted program would cost as little as $200 million per year, compared to $1 billion a year in lost tax revenues under the old system, New York Daily News reported.

“It’s a win-win,” the Assembly Democrat told the Daily News. “It’s filling the void that’s been created by the lack of 421-a and we’re taking a different philosophical slant.”

The administration of Mayor Bill de Blasio had no part in creating the proposal, according to the Daily News. A representative for the Real Estate Board of New York told The Real Deal that the proposal is not an actual replacement for 421a. A representative for the Building & Construction Trades Council said the group is reviewing the proposed legislation and does not yet formally support the subsidy program. A spokesperson for the New York State Association for Affordable Housing said the while the group supports the concept behind the proposal, it hasn’t formally endorsed the bill and doesn’t view it as a replacement for 421a.

The 421a tax abatement expired in January after negotiations over prevailing wage requirements between REBNY and the constructions unions broke down. It’s impending end inspired a wave of building permit filings by developers hoping to take advantage of the program before it disappeared. [NYDN]Ariel Stulberg

Correction: An earlier version of this story misstated the position of REBNY, the Building & Construction Trades Council and the New York State Association for Affordable Housing due to an error in the source article.

The headline was amended to clarify that it was Assemblymember Wright who characterized the proposal as a replacement for 421a. 


Related Articles

arrow_forward_ios
(Getty)
A December to forget: Multifamily projects slow to a trickle
A December to forget: Multifamily projects slow to a trickle
From left: Stonehenge NYC's Ofer Yardeni and UBS' Ralph Hamers along with 408 East 92nd Street (Getty, Stonehenge NYC, UBS, Google Maps)
Yardeni’s Stonehenge pays $115M for Upper East Side rental
Yardeni’s Stonehenge pays $115M for Upper East Side rental
a stalled construction site in New York
Expired 421a deadline jeopardizes 33K housing units
Expired 421a deadline jeopardizes 33K housing units
Housing Rights Initiative's Aaron Carr and Muss Development's Jason Muss
Judge reopens tenants’ 421a rent overcharge suit against Muss
Judge reopens tenants’ 421a rent overcharge suit against Muss
REBNY’s Basha Gerhards with 1727 Amsterdam Avenue and 806 Ninth Avenue
These projects survived the 421a apocalypse
These projects survived the 421a apocalypse
Kathy Hochul, Housing Construction
Hochul to localities: Build more housing or get out of the way
Hochul to localities: Build more housing or get out of the way
A photo illustration of The Real Deal's Kathryn Brenzel
Hochul’s real estate priorities for 2023
Hochul’s real estate priorities for 2023
What’s the Plan B for 421a?
What’s the Plan B for 421a?
What’s the Plan B for 421a?
arrow_forward_ios

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

Loading...