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Outer boroughs are focus of latest 421a talks
City Hall says proposal would cost NYC $1B a year
Expanding 421a eligibility to outer borough development is at the center of last-minute budget talks in Albany.
Gov. Andrew Cuomo and representatives from the Real Estate Board of New York are hammering out changes to the governor’s proposal to reinitiate the abatement, now officially called “Affordable New York.” The tax break is tied to a separate allocation of $2.5 billion for affordable housing, Politico reported.
Under a state Senate proposal, the program’s purview — in Manhattan south of 96th Street and parts of Brooklyn and Queens — would be expanded to include additional neighborhoods.
The would also increase the eligibility for condos receiving the 421a exemption, to an assessed value of $85,000 from $65,000. Under the proposal, developments with four to 80 units would qualify for the tax break.
“Why should my constituents be cut out of a 421a program that will only benefit certain sections of the city?” state Sen. Simcha Felder, who represents Borough Park, told Politico.
City Hall says that allowing outer borough condos to receive 421a tax breaks could cost the city $1 billion a year. The current Senate proposal would increase the overall cost of 421a by $1 billion, according to the city.
Earlier this month, the city’s Independent Budget Office said the governor’s 421a proposal could cost the city $8.4 billion in property tax revenue over 10 years. [Politico] — E.B. Solomont