421-a uncertainties threaten financing

The 421-a tax abatement program used to simply require Manhattan developers to build below 96th Street, but now, to be grandfathered into the old program, developers must prove that they laid their foundations before July 1. To qualify for the tax abatements now, developers must build some low- and medium-income housing units. Developers do not find out whether or not they’ve been grandfathered under the old rules until their structure is completed, and some developers say their financing is threatened by the uncertainty. This month, The Real Deal takes a look at what the effect of the 421-a code changes on new developments.