De Blasio concerned that Albany will try to add larger condos back into 421a

Some lawmakers have been pushing for an expansion

TRD New York /
Jan.January 24, 2017 05:35 PM

Mayor Bill de Blasio on Tuesday said he’s concerned about negotiations surrounding the revival of 421a, specifically that lawmakers might make a play to add larger condo projects back into the program.

“We all can agree that this has been one of the great moving targets over the last few years,” he said during his presentation of the city’s preliminary budget for fiscal year 2018. “No one knows where it’s going.”

Last week, Gov. Andrew Cuomo proposed the latest iteration of 421a, rebranded as“Affordable New York.” The proposal closely mirrored the legislation signed in June 2015, with the addition of modifications agreed to by the Real Estate Board of New York and the Building and Construction Trades Council in November 2016. Cuomo said last week that the new program would create 2,500 units of new affordable housing per year.

The latest proposal, like the one in June, allows certain small condo projects outside Manhattan to qualify for the tax abatement. However, in December, Brooklyn Senators Marty Golden and Simcha Felder said they would push for larger condos to be included in the program. A spokesperson for the mayor told The Real Deal on Tuesday that de Blasio was referring to their efforts and additional chatter in Albany. The concern is that lawmakers — specifically Senate Republicans — might try to expand the program to other condo projects before reviving the tax abatement.

Representatives for Felder declined to comment on Tuesday.

“The governor’s proposal does not include expanding the program to include condominiums, and as he has said publicly, would not support a plan that does,” said Dani Lever, a spokesperson for the governor.

De Blasio noted that the tax abatement’s revival seemed closer than ever, but he was concerned by the uncertainty of the costs that could be added to the city if more condo projects become eligible for the program.

The mayor — whose own proposal in 2015 excluded condos from 421a — also noted that real estate transactions dropped 15 percent in the first half of fiscal year 2017, compared to the same time the year prior. The number of approved residential construction permits plunged dramatically in 2016, dropping 70 percent from 2015, when 421a was in effect.

In December, The Real Deal and ProPublica published a detailed analysis of how the industry bankrolls state legislators who are sympathetic to 421a.

Will Parker contributed reporting. 


Related Articles

arrow_forward_ios
Economic Development Corporation CEO James Patchett (Getty; iStock)

EDC’s $58M in Times Square rent mostly sunk into ferries

EDC’s $58M in Times Square rent mostly sunk into ferries
(Getty)

“On the verge of a tragedy:” The stark numbers of a pandemic-hit NYC

“On the verge of a tragedy:” The stark numbers of a pandemic-hit NYC
City Council member Brad Lander and Mayor Bill de Blasio (Getty; iStock)

Rezoning Gowanus, de Blasio’s shot at redemption, is no sure thing

Rezoning Gowanus, de Blasio’s shot at redemption, is no sure thing
Corey Johnson, Andrew Rigie and Mayor Bill de Blasio (Getty)

Commercial tenant protections get extension from de Blasio

Commercial tenant protections get extension from de Blasio
A photo illustration of Mayor Bill de Blasio at a restaurant (Getty)

NYC’s outdoor dining program will become permanent

NYC’s outdoor dining program will become permanent
Mayor Bill de Blasio (Getty)

Business owners request Open Restaurant plan for retail

Business owners request Open Restaurant plan for retail
NYC Hospitality Alliance’s Andrew Rigie and Mayor de Blasio (Hospitality Alliance; Getty; iStock)

City can’t afford to bail out restaurants: de Blasio

City can’t afford to bail out restaurants: de Blasio
Council members Antonio Reynoso and Keith Powers (Twitter, NY City Council, Getty)

City Council proposes bill to expand outdoor dining permanently

City Council proposes bill to expand outdoor dining permanently
arrow_forward_ios

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

Loading...