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
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
Kirk Goodrich, president of Monadnock Development, is opposed to the bill sponsored by Bran Lander. (Getty, Monadnock Development)

Council bill favoring nonprofits for affordable housing will hurt minority-led firms: developers

Council bill favoring nonprofits for affordable housing will hurt minority-led firms: developers
Sen. Charles Schumers aid President-elect Joe Biden agreed to assist NYC. (Getty)

NYC loses $2.5B in property taxes, gets $1B from FEMA

NYC loses $2.5B in property taxes, gets $1B from FEMA
President-elect Joe Biden's relief plan focuses on the coronavirus and opening schools. (Getty)

Biden’s $1.9T package would extend eviction ban, boost rent relief

Biden’s $1.9T package would extend eviction ban, boost rent relief
Gov. Andrew Cuomo announced that a major development surrounding Penn Station. (Getty)

Cuomo adds housing to $51B Midtown West project

Cuomo adds housing to $51B Midtown West project
Eric Trump and Donald Trump Jr. with President Donald Trump (Getty)

These are the companies dumping the Trump Organization

These are the companies dumping the Trump Organization
arrow_forward_ios

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

Loading...