Cuomo’s affordable housing plan could cost city extra $820M

421a cost the city $1.2B in fiscal 2016

New York /
Jan.January 27, 2017 10:30 AM

Gov. Andrew Cuomo’s affordable housing legislation could cost New York City an extra $820 million over 10 years, according to a new analysis by the city.

City Hall didn’t put a cost on the entire revised 421a plan — now known as “Affordable New York” — which reportedly cost the city $1.2 billion in Fiscal Year 2016.

But the governor’s proposed changes to the program would cost the city about $82 million a year more than legislation supported by the de Blasio administration in 2015, according to the Department of Housing Preservation and Development, Politico reported.

A spokesperson for the governor said the expenses to create housing for New Yorkers “are minimal, 26 years out, and worth it.”
“In 2015, the mayor proposed amendments to 421-a that made the program far more expensive overall, but stood to create more units of affordable housing. The governor’s proposal provides more affordability for tenants and fairer wages for workers, but keeps the cost of the program from the original 2015 law largely intact,” said the spokesperson, Dani Lever.

Earlier this month, Gov. Cuomo introduced a bill to revive 421a — now called Affordable New York — to replace the abatement that expired last January.  Earlier this week, de Blasio expressed concern that lawmakers in Albany would try to push for larger condominium projects to be included in 421a.

In November, the two largest lobbying groups for developers and construction workers signed off on an agreement to bring higher wages to workers at large projects.

The Real Deal and ProPublica published a detailed analysis last year of how the real estate industry bankrolls state legislators who support 421a.

In addition to higher wages, Cuomo’s bill extends the tax break to 35 years, from 25 years, and would give developers a complete tax break for the last decade. Units building as affordable housing would have to remain at those rents for 40 years. [Politico]E.B. Solomont


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
A rendering of 165 Broome Street (Credit: Handel Architects)
Nonprofit plans affordable housing development near Essex Crossing
Nonprofit plans affordable housing development near Essex Crossing
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
President Joe Biden (Getty, iStock)
Biden’s broadband bucks could wire all of NY’s affordable housing
Biden’s broadband bucks could wire all of NY’s affordable housing
Enterprise President and CEO Priscilla Almodovar (Getty)
Enterprise closes low-income housing funds after raising $365M
Enterprise closes low-income housing funds after raising $365M
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
Camber Property Group's Andrew Moelis and Rick Gropper with 2060 Pitkin Avenue in Brooklyn and 1971 and 1975 Grand Avenue in the Bronx (Photos via Camber Property Group, Omni New York)
Affordable housing developer Camber scoops up Section 8 portfolio
Affordable housing developer Camber scoops up Section 8 portfolio
33 Eastville Ave, Sag Harbor, NY (Google Maps)
East Hampton pursues affordable housing dev for former Baptist church
East Hampton pursues affordable housing dev for former Baptist church
arrow_forward_ios

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

Loading...