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.