How one unit helped Moinian be among the first to receive new 421a tax break

Developer held off on filing at one unit for seven months, extending window for program

TRD NEW YORK /
Jul.July 19, 2018 10:15 AM

Sky at 605 West 42nd Street

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


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Commercial loans expected to suffer because of the pandemic (Credit: iStock)

March saw fewer CMBS delinquencies. That is likely to change: Fitch

(Credit: iStock)

Thousands of CRE borrowers call on banks for debt relief

Banks, funds, mortgage REITs, and agencies like Fannie Mae and Freddie Mac have all begun adjusting their lending approach in face of the economic downturn (Credit: iStock)

These are the sectors where real estate lending is still happening: report

Angel Oak Cos. CEO Michael Fierman and Flagstar Bancorp Inc. CEO Alessandro DiNello (Credit: Angel Oak, Flagstar, iStock)

Mortgage market dries up for unconventional home loans

A WeWork office (Credit: Alex Tai/SOPA Images/LightRocket via Getty Images)

WeWork offers rent discounts as incentive to secure long-term leases

Gary Barnett, Central Park Tower, and the Tel Aviv Stock Exchange Bull (Credit: Wikipedia, iStock)

Extell’s Israeli bonds put on downgrade watch

arrow_forward_ios
Loading...