The Moinian Group’s Sky development is among the first to qualify for the revamped 421a tax abatement, even though the developer was already mostly done with construction of the building.
The rental tower at 605 West 42nd Street was recently approved for a 35-year property tax break, Crain’s New York reported. In exchange, 295 apartments will be allotted for affordable housing.
Developers can apply for the tax break up to one year after the Department of Buildings vouches for all the units being safe and habitable. Moinian delayed filing for approval for one unit for seven months, extending the approval window, Crain’s reported.
The most recent version of the program requires developers in Manhattan and on the Brooklyn-Queens waterfronts to meet a wage floor, the report said. Moinian’s building was constructed with union labor, with wages high enough to meet the requirement.
Last year, the 421a program was revived as “Affordable New York.” Key changes — from the version that expired in 2016 — include wage requirements for construction workers on certain projects and a 35-year break from property taxes on large projects that pay these wages.
In March, the Department of Housing Preservation and Development suspended 421a benefits from more than 1,700 properties, claiming owners and developers didn’t file for a final certificate of eligibility as required. [Crain’s] — Meenal Vamburkar