Provides that in order to be exempt from local real property taxation, the construction of certain new multiple dwellings must commence before June 15, 2020

Title of bill

An act to amend the real property tax law, in relation to extending the construction period for certain new multiple dwellings which are exempt from local taxation

Purpose

This bill would extend authority for the existing 421-a affordable new construction housing program in New York City for an additional 4 year period.

Summary of provisions

This bill amends Section 421-a of the Real Property Tax Law by extending the benefits thereof for projects commencing before June 15, 2015 to projects commencing before December 31, 2020.

Justification

Section 421-a of the Real Property Tax Law has provided tax benefits for construction of new residential buildings in the City of New York since 1971. Section 421-a benefits are available for up to 25 years depending upon the location of the multiple dwelling. To meet the requirements of 421a, new housing must be certified as having a minimum of 20% of units affordable to families of low and moderate income. It provides a period of full exemption followed by a phase-out to full taxation. The continuing shortage of affordable housing in the City of New York necessitates the extension of this essential tax exemption program that serves as an incentive for the development of new housing. The 421-a program has been primarily responsible for encouraging the construction of new housing in New York City since 1971. Since 1985,

the 421-a program has also been responsible for generating affordable units both in Manhattan and in the outer boroughs. The proposed legislation would ensure that the 421-a program continues to fulfill this mission.

Bill history

2015: S.2218 Committed to Rules

Fiscal implications

None to state. The 421-a program is administered by NYC.

Effective date

The act shall take effect immediately.