End times for 421aa? NYC remains without the tax break

But the Senate session continues to drag on

TRD New York /
Jun.June 17, 2016 12:40 PM


As the legislative session continues to drag to a close, New York is still without 421a.

A replacement tax abatement — 421aa — was proposed late on Monday but has languished in the Senate Rules Committee, sponsor-less and without a navigable path to the governor’s desk. The new program closely resembles its single-a predecessor, with a few changes involving construction wages and condominiums eligible for the abatement. The measure calls for a minimum wage of $15 an hour at most construction sites and an increased in the assessment value of condos that can be built under the program from $65,000 to $75,000.

This didn’t go over well with the Building and Construction Trades Council, whose president Gary LaBarbera called the bill “offensive” and “in bad form.” The BCTC and the Real Estate Board of New York spent months trying to negotiate a new program, based on a directive from Albany to come to an agreement over a prevailing wage requirement. Though the groups have said they came close to a deal — one option that involved including condos in the program — negotiations ultimately failed. Gov. Andrew Cuomo has said that he won’t support a tax break that doesn’t feature a prevailing wage component.

Given the bill’s timing and its political implications, 421aa’s chances seemed paltry from the start. Still, other forces have also reportedly been at play. Senate Republicans linked the future of $2 billion earmarked for supportive housing to discussions about 421a, Politico reported. News also surfaced that only $150 million of that sum would be freed up to begin construction of housing for the homeless. The future of these funds remains unclear.

An analysis by The Real Deal earlier this week showed that only 2,700 new apartments in projects with 10 or more units were approved for construction through May of this year, compared to the 20,700 greenlit during the same period in 2015.


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
Gov. Andrew Cuomo (Getty, iStock)

Eviction moratorium extended until September

Eviction moratorium extended until September
Clockwise:  CBRE's Michael Remer, Richard Hodos and Joel Stephen with the Wizarding World Building at 935 Broadway (Images via CBRE)

CBRE’s Hodos and other Muggles win REBNY award for Harry Potter deal

CBRE’s Hodos and other Muggles win REBNY award for Harry Potter deal
Governor Andrew Cuomo (iStock; Cuomo by Stefani Reynolds/Getty Images)

End of eviction ban to unleash 14,000 warrants in NY

End of eviction ban to unleash 14,000 warrants in NY
Gov. Andrew Cuomo (Photo by Richard Drew-Pool/Getty Images)

State can now revoke real estate licenses for discriminatory practices

State can now revoke real estate licenses for discriminatory practices
Vornado chairman Steven Roth and Related chairman Stephen Ross (Roth by Misha Friedman/Getty Images; Ross by Mark Brown/Getty Images)

Protesters revisit Steven Roth, Stephen Ross and other NY billionaires

Protesters revisit Steven Roth, Stephen Ross and other NY billionaires
arrow_forward_ios

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

Loading...