Landlords accused of violating 421a rules would’ve paid $304M in property taxes this year

Officials sent out warning notices to another 3,000 buildings

TRD New York /
Dec.December 06, 2016 10:10 AM
From left: Vicki Been, Bill de Blasio and Jacques Jiha

From left: Vicki Been, Bill de Blasio and NYC Commissioner of Finance Jacques Jiha

The latest batch of landlords accused of violating the terms of 421a would’ve paid $304 million in property taxes this year without the tax break, according to city officials.

Officials warned the owners of 3,103 rental buildings — with 37,141 apartments— that they will lose their 421a benefits if they fail to meet a basic requirement of the tax break. The landlords allegedly failed to file a Final Certificate of Eligibility with the city’s Department of Finance — a form that assures that rental units are registered as rent stabilized, according to a joint announcement by Mayor Bill de Blasio, the city’s Department of Housing Preservation and Development and the Department of Finance on Tuesday. Landlords who don’t submit the form within the next 13 months will have their benefits suspended.

The crackdown closely follows another string of similar warning notices sent out last month. Officials threatened to retroactively revoke 421a benefits from the owners of 178 residential buildings who allegedly failed to register their properties as rent-regulated.
ProPublica reported soon after that officials planned to notify an additional 3,000 building owners that they were noncompliant.

Last month, the Building and Construction Trades Council and the Real Estate Board of New York reached an agreement that will likely pave the way for the tax break’s revival — though a bill has not yet been introduced before the state Legislature. The deal established wage requirements in some areas — south of 96th Street and along the Brooklyn and Queens waterfronts and extended the tax abatement to 35 years in those areas.

In the days following the deal, news of 421a-related enforcement actions and legislation emerged. The City Council introduced two bills that call on the city’s housing agency to step up oversight over the program. One of the bills would require HPD to audit 421a properties annually to make sure that landlords are complying with rent-regulation requirements. — Kathryn Brenzel


Related Articles

arrow_forward_ios
Blackstone CEO Steven Schwartzman and Stuyvesant Town (Credit: Getty Images)

After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies

Real Capital Analytics data showed that New York’s multifamily market had a very slow July. (Credit: iStock)

New NYC rent law “beginning to shut down investment”

Some landlords say they plan to close the door to vacant apartments and wait for the laws to change (Credit: iStock)

Creative ways NYC landlords are getting around the new rent rules

Jay Martin, James Whelan and Joe Strasburg

Rent-pocalypse 2.0: Real estate industry reacts to tenant demands

Cases to challenge tenant residency have declined since June (Credit: iStock)

More rent-law fallout: Landlords back off “absentee” tenants

10 Hanover Square (Credit: Google Maps)

FiDi landlord violated rent stabilization regs for years: lawsuit

Here’s why landlords don’t hate California’s rent control bill

Cea Weaver (Credit: Elijah Stevens)

The tenant movement’s giant killer

arrow_forward_ios