421-a Update: Brownfield Tax Credit Program is NOT Substantial Government Assistance

March 28, 2022

The Department of Housing Preservation and Development (HPD) was considering whether participation in the Brownfield Tax Credit Program constituted Substantial Government Assistance (SGA). Several of the more popular Affordable New York 421-a (16) options would have otherwise been unavailable had HPD considered the Brownfield Program to be a form of SGA.

We have been advised today by HPD that the Agency has determined that participation in the Brownfield Program is NOT a form of SGA and therefore a project’s inclusion will not jeopardize the 421-a (16) option election. Please be sure to contact Brett Gottlieb or Mitchell Korbey should you have any additional questions.

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