Gov. Hochul Announces Goals for a Replacement 421-a Program

January 5, 2022

Today, Governor Hochul, addressed the people of the State of New York in the annual State of the State Address. While today's speech was silent with regards to the 421-a Affordable New York Program, The Governor’s Briefing Book highlighted the following goals for a program which she would support with regards to a replacement affordable housing property tax benefit program:

• Create deeper affordability that services lower income households than 421- a.

• Create longer-term affordability to provide more stability for low-income households.

• Ensure long-term availability of affordable rental units in neighborhoods across New York City.

• Restructure the tax abatement to ensure maximum efficiency of taxpayer dollars with City and State climate goals by requiring carbon-neutral technologies, electrification and electrification-ready building systems.

• Allow flexibility to enable construction of financially viable smaller buildings.

• Create an all-affordable homeownership option to promote low- and moderate-income homeownership opportunities across the City.

The current version of the 421-a Affordable New York Program requires that construction commence prior to June 15, 2022. We remain optimistic that the Governor's proposal as outlined above will offer a viable solution and address the critics of the expiring 421-a Program.

We will keep you abreast of any future developments. Please contact either Brett Gottlieb or Mitchell Korbey for more information.

Mitchell A. Korbey at +1 212 592 1483 or [email protected]
Brett J. Gottlieb at +1 212 592 1455 or [email protected]

© 2022 Herrick, Feinstein LLP. This alert is provided by Herrick, Feinstein LLP to keep its clients and other interested parties informed of current legal developments that may affect or otherwise be of interest to them. The information is not intended as legal advice or legal opinion and should not be construed as such.