NYC Housing Tax Break’s Expiration Portends Unclear Future

June 17, 2022 – Media Mention
Law360 Tax Authority

Real Estate partner Brett J. Gottlieb spoke to Law360 Tax Authority about how the lapse of the 421-a tax incentive program will spark a greater discussion on the effectiveness of tax abatements for real estate developers in creating more affordable housing in the city. The article explained that a replacement program backed by Mayor Eric Adams and Governor Kathy Hochul was ultimately removed from the year's budget. Hochul affirmed that she will revisit the program in next year's budget, which the article noted will be after her reelection campaign. 

Brett expressed hope that, after this election session, "various political stakeholders can reimagine what an effective affordable-housing tax-incentive program should look like." The article stated that he said "it would be beneficial if they looked to include more affordability options at various levels of area median income and an incentive to convert existing residential buildings into affordable housing units."

Brett also highlighted, "Existing buildings offer the quickest means of increasing affordable housing inventory[.]"

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