Confusion, ignorance costing developers crucial tax break

Herrick Real Estate partner, Brett Gottlieb, spoke with The Real Deal about what may be causing fewer multifamily developers to apply for an extension of the 421a affordable housing tax incentive. 

The article highlighted that developers may be unaware or confused about the 421a extension. Of course, the confusion isn’t ubiquitous. Brett noted that all of his clients had completed the extension and drafted "contingency plans" in case they did not qualify for higher rents under 421a's Option C.

Brett also pegged low application volume to good old-fashioned procrastination. "My expectation is there will be a late surge of submissions right up until the deadline," Brett explained.

Read the full article in The Real Deal here. Access may require a subscription.