Developers battle 421-a construction deadline as Gov. Hochul proposes extension
Herrick partner, Brett Gottlieb, spoke to the New York Business Journal to discuss what may be happening with the expired 421-a tax incentive for New York developers. Currently, for developers to qualify for 421-a, the project must have commenced construction before June 15, 2022, and complete construction before June 15, 2026. However, Gov. Kathy Hochul proposed extending the completed construction deadline to 2030, giving developers four more years to build in her 2023 budget proposal
"It wouldn't make sense, on the local level, the city level, to have these politicians campaign on rezoning to improve a neighborhood and then for them to turn around and not support the program, which is required to actually complete their vision," said Brett.
The article notes that it’s unlikely projects will be abandoned if they begin construction, but rather developers won’t begin construction in the first place if they don’t see themselves being able to complete by 2026.
"You're not going to end up with a neighborhood. You're not going to have a new community, which was originally envisioned. You might end up with a building here and a dirt patch there and an industrial wasteland," Brett added. “It could be a very disjointed community."
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