The Real Deal New York

Brooklyn politicians want 421a for pricey outer borough condos

Albany currently negotiating renewal of tax abatement program
December 14, 2016 09:53AM

Marty Golden and Simcha Felder

Two Brooklyn state senators are leading a push to make larger and pricier outer borough condo developments eligible for the 421a tax abatement.

State lawmakers are currently working on a renewal of the program after construction unions and real estate leaders agreed on wage requirements last month for projects in Manhattan south of 96th Street as well as the Brooklyn and Queens waterfronts.

A June 2015 proposal never signed by Gov. Andrew Cuomo severely limited the eligibility of condo developments for the tax break. Brooklyn senators Simcha Felder and Marty Golden want to loosen those restrictions.

“I want to be clear that it’s been an ongoing quest,” Felder told Politico. “It’s been an ongoing battle since (421-a) died. Bringing 421-a back to life is a wonderful goal, but it should certainly include people in the outer boroughs.”

Under the June 2015 proposal, only outer borough condos with less than 35 units and an average price of around $700,000 would qualify, and only if a resident had lived in the unit for at least five years. Cuomo refused to sign the bill before unions and developers reached a deal on wage requirements at 421-a developments. As talks dragged on, the program expired in January.

The two sides finally reached a deal last month, but lawmakers still have to pass legislation to renew the program.

Felder said he wants buildings with four units to qualify for the tax abatement, down from the prior minimum of six. [Politico]Konrad Putzier