Adams warns NY state pols’ inaction jeopardizes affordable housing
The construction of 2,600 apartments for working and middle-income tenants across New York City is at risk after state lawmakers refused to extend eligibility rules for a controversial property tax break. A project list compiled by the real estate industry shows that 17 plans in four of the five boroughs — already approved — would provide nearly 10,000 new units, with about 25% of them set aside for lower than market-rate rents. Mayor Eric Adams has warned that losing these potential developments could push the city’s housing shortage to a critical stage. The 421-a tax abatement program in place for pipelines before it lapsed last year faces expiration before lawmakers complete work for the 2023 legislative session on Thursday.
FAQs
What is the 421-a tax abatement program?
The 421-a tax abatement program was created in 1971 as a way to incentivize developers to build moderate and middle-income housing in New York City. It provides property tax exemptions to developers who set aside a certain percentage of units for below-market rents.
What is at risk if the program is not extended?
The refusal to extend the eligibility rules for the 421-a tax abatement program could imperil the construction of 2,600 apartments in four of New York’s five boroughs, with about 25% of the units set aside for lower than market-rate rents.
What impact could this have on the city’s housing shortage?
Losing the opportunity to build these apartments could worsen the Big Apple’s already critical housing shortage. Rents across the city have soared to record levels as the number of new housing units has ground to a halt, with just six apartment buildings permitted last month across the five boroughs, none of them in Manhattan.
What is the proposed plan by Governor Kathy Hochul?
Governor Kathy Hochul in January proposed a sweeping housing plan to build 800,000 units that would require suburban communities to build more new homes and higher density apartment complexes near commuter rail stations. However, lawmakers opposed the heavy-handed approach and sought to rely on an incentives-only program. No agreement could be reached as part of the state budget approved in April.
Affordable Housing at Risk as Adams Issues Warning to NY State Politicians’ Inaction
Thousands of affordable apartments for working and middle-income tenants could be imperiled due to state lawmakers’ refusal to extend eligibility rules for a controversial property tax break. According to a project list collated from sources in the real estate industry, nearly 10,000 new units – including market rate apartments – have already been approved in four of New York’s five boroughs. About one-quarter of the units would be set aside for below-market rents. Losing the apartments could worsen the city’s housing shortage, which has reached critical levels in recent months. Rents across the city have soared to record levels as already anemic levels of housing production have ground to a halt.