New York City Comptroller Brad Lander Calls for End of 421A NY Tax Abatement
Posted on 03/19/2022
New York City Comptroller Brad Lander is urging state legislators to let the expiration of the Affordable New York tax abatement occur. The abatement known as the 421-a is set to expire on June 15, 2022. The 421-a tax abatement program that provides a tax break to developers who set aside affordable housing at new developments. According to an analysis released March 16, 2022 by Brad Lander’s office, the tax program will cost the city US$ 1.77 billion for 64,000 exemptions in forgone tax revenue in 2022. The report discovered the income-restricted units that come from 421-a buildings are not affordable to most residents.
New York Governor Kathy Hochul’s new pitch creates a new property tax code, 485-w, to replace 421-a, if approved by Albany lawmakers. The governor’s proposal does call for the units built to be more affordable, a lot of the structure of the existing tax abatement remains. Affordable housing advocates argue that Hochul’s plan is a “handout” to the New York City’s real estate industry.
