Loss of tax break will deflate Gowanus, Soho rezonings, industry says
Chair of Herrick's Land Use & Zoning group, Mitchell Korbey, was quoted in The Real Deal discussing the fate of the Gowanus developments in Brooklyn and the rezonings of SoHo/NoHo in Manhattan as it relates to the outcome of the 421-a/Affordable New York Program.
The article states, "Real estate professionals argue that without 421a — or a comparable replacement — the ambitions behind the recent rezonings in high-cost areas of Gowanus and Soho will not be realized. In other words, the thousands of affordable housing units that supporters of the rezonings predicted they would bring to the neighborhoods won’t get built. Developers would instead opt to go commercial or simply wait until a new incentive is put in place."
Mitch is quoted as saying, "If it doesn’t come to pass, it seems very clear that rental housing is not viable... The idea that the market rate units cross-subsidize the affordable units and the incentive is not needed is completely wrong."
Read the full article in The Real Deal here. Access may require a subscription.