New York’s 421-a Tax Abatement Is Dead. Now What?
Herrick Real Estate partner Brett J. Gottlieb spoke to the Commercial Observer about the expiration of the 421-a tax exemption program and what it means for the future of affordable housing construction in New York.
The article noted that Gov. Kathy Hochul proposed a replacement program, but it was removed from the year's budget due to lack of support from housing advocates and lawmakers. Instead, a newly-formed Affordable Housing Commission will consider multiple proposals and programs to tackle New York's housing crisis.
Brett explained, "There are tweaks that could be made that would probably satisfy the development community and those concerned about the far-lasting impacts of 421-a on the other side," adding, "Otherwise you’re not going to see developers go forward with multifamily projects where they’re required to provide middle- and low-income affordability in exchange for additional floor-to-area-ratio if they’re paying full-freight taxes. The economics just doesn’t work."