New York’s Real Estate Industry Would Like a Word With Lawmakers on 485x
Herrick Real Estate partner, Brett Gottlieb, was quoted by the Commercial Observer in an article discussing how New York’s real estate industry is increasingly calling on state lawmakers to revisit 485-x, the property‑tax exemption that replaced the expired 421-a affordability incentive, arguing that there is need for additional solutions to stimulate the scale of multifamily housing development the city needs.
Brett noted that some owners have skirted the requirements by constructing multiple 99-unit buildings next to each other that may share amenities and other features on some of their levels but are technically separate structures with separate certificate of occupancies. He proposed the state increase the minimum number of units that would trigger the construction wage requirements.
"The ones that are using the incentive in parts of Manhattan can absorb the higher market-rate rents that can in theory pay for higher construction costs, but a building with 125 units in the outer boroughs is just not going to support it," he said.
Brett also proposed creating exclusion zones where the 99-unit threshold would not apply, such as less wealthy areas outside much of Manhattan and along the Brooklyn and Queens waterfront.
"One would hope labor leaders would be interested in whatever job creation and wage growth they can get from the program," he said. "By modifying these restrictions in part of the city, there would not necessarily be jobs of the same wage, but there would be significantly more jobs available."
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