421a is gone, but not forgotten: Cuomo

Governor still expecting REBNY and unions to agree to a deal

New York /
Apr.April 06, 2016 08:05 AM

Developers and constructions unions may have failed once – or many times – to arrive at a deal to save 421a, but Gov. Andrew Cuomo hasn’t given up on them.

“421-a itself is dead,” top aide Bill Mulrow said, according to Crain’s, “We tried to see if there was a way to revive 421-a, but the question is whether there will be some successor tax-abatement program that allows rental housing to be built here.”

Mulrow warned that as rental development continues to flag, the Real Estate Board of New York and the Construction Trades Council of Greater New York will finally be forced to agree on prevailing wage requirements, the sticking point that led to the breakdown in negotiations late last year.

“That will end soon, and somewhere in there I think the developers, REBNY, and the construction trades will find some common ground, because we have to do it,” Mulrow said.

The tax abatement is widely considered essential to funding the building of rental properties in New York, given the city’s high land prices. Experts have argued that Mayor Bill de Blasio’s recently-passed Mandatory Inclusionary Housing plan depends on the existence of a tax abatement. [Crain’s]Ariel Stulberg


Related Articles

arrow_forward_ios
Governor Andrew Cuomo and Senator James Skoufis (Credit: Getty Images, NY Senate)
Owners of some residential properties can’t hide behind LLCs anymore
Owners of some residential properties can’t hide behind LLCs anymore
Governor Andrew Cuomo and 538 Johnson Avenue in Brooklyn (Credit: Google Maps and Getty Images)
Landlords take another hit: Cuomo signs expanded Loft Law
Landlords take another hit: Cuomo signs expanded Loft Law
John Banks
High expectations: A look at John Banks’ 4 years at REBNY
High expectations: A look at John Banks’ 4 years at REBNY
Interactive Map of Projects Planned Under Gowanus Rezoning
Here they come: Map shows projects planned in rezoned Gowanus
Here they come: Map shows projects planned in rezoned Gowanus
Small developments dominate as new building filings return to pre-pandemic levels
Small developments dominate as new building filings return to pre-pandemic levels
Small developments dominate as new building filings return to pre-pandemic levels
Commercial brokers’ confidence at all-time high: REBNY survey
Commercial brokers’ confidence at all-time high: REBNY survey
Commercial brokers’ confidence at all-time high: REBNY survey
Governor Kathy Hochul (Getty)
Hochul downsizes Cuomo’s Penn Station plan
Hochul downsizes Cuomo’s Penn Station plan
Will 10 new towers pay for Penn Station?
MTA chair: 10 new towers may not fund Penn Station expansion
MTA chair: 10 new towers may not fund Penn Station expansion
arrow_forward_ios

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

Loading...