Lawmakers reach deal over 421a by linking it to rent regulation

Rob Speyer was driving force in pushing deal through

New York /
Apr.April 05, 2017 10:55 AM

Lawmakers have reached a deal to reinstate 421a after the abatement was set aside in protracted budget negotiations over the weekend, a report claims.

The exemption closely mirrors the legislation proposed by Gov. Andrew Cuomo in January, dubbed “Affordable New York,” and doesn’t include changes proposed by the state Senate that would’ve added certain condo projects, Politico reported. Rob Speyer, chairman of the Real Estate Board of New York, is being credited with pushing the deal through.

The new tax break is being linked to rent regulation, which is up for renewal in 2019. The tax abatement will remain in place until 2022, unless rent regulation is removed. If 421a is retired in 2022, rent regulations will also be impacted, Politico reported.

The new tax break would require buildings with 300 units or more to pay construction workers $60 per hour in Manhattan south of 96th Street and $45 an hour along the Brooklyn and Queens waterfronts. The governor’s proposal also extended the break from 25 to 35 years for projects that pay these wages. The state Senate introduced a bill that wanted to increase the kinds of condo projects eligible for the program, upping the unit threshold from 35 to 80. The governor’s proposal to limit condo projects to those with as many as 35 units and an average tax assessment value of $65,000, however, remains intact in the latest deal.

Mayor Bill de Blasio’s has complained that the city loses too much revenue under Cuomo’s proposal. [Politico] Kathryn Brenzel 


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
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
Governor Andrew Cuomo and 538 Johnson Avenue in Brooklyn (Credit: Google Maps and Getty Images)
Landlords take another hit: Cuomo signs expanded Loft Law
Landlords take another hit: Cuomo signs expanded Loft Law
Rob Speyer on the long arc of megadevelopment, New York’s renaissance and proptech bets
Rob Speyer on the long arc of megadevelopment, New York’s renaissance and proptech bets
Rob Speyer on the long arc of megadevelopment, New York’s renaissance and proptech bets
Clockwise from top: Mayor Eric Adams, Bruce Teitelbaum, Adrienne Adams and Suri Kasirer (Getty/Adams via Paul Dilakian)
A make-or-break moment for NYC’s housing crisis
A make-or-break moment for NYC’s housing crisis
Mayor Eric Adams (Photos by Paul Dilakian)
Eric Adams critiques DOB, wants to roll out “red carpet” for development
Eric Adams critiques DOB, wants to roll out “red carpet” for development
Southampton Village mayor Jesse Warren (Getty Images, iStock, Illustration by Kevin Cifuentes for The Real Deal)
Southampton Village allows owners to collect summer’s rent upfront
Southampton Village allows owners to collect summer’s rent upfront
Gary LaBarbera, James Whelan, Eric Adams, Tiffany Cabán and Kathy Hochul (Getty, iStock / illustration by Ilya Hourie for The Real Deal)
Council backs off sabotage of 421a
Council backs off sabotage of 421a
arrow_forward_ios

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

Loading...