Expiring tax abatement law causes spike in construction

The coming expiration of the 421(a) tax abatement has caused a spike in city construction as developers rush to get projects started before the deadline. The law grants five tax-abatement certificates per unit to developers that build low-income units. The rush to take advantage of the law is credited with sparking 298 new construction sites throughout the city in January and February. The law is being repealed over concerns that it was subsidizing luxury condos that few New Yorkers could afford. Construction is expected to slow down after the program expires this summer.