A new report released by the Real Estate Board of New York says that 5,500 affordable housing units that are currently planned are the result of the 421a tax abatement.
REBNY analyzed a sample of large projects including Forest City Ratner’s Pacific Park, Two Trees’ Domino Sugar project and Alma Realty’s Astoria Cove, and found that 421a is responsible for 5,484 affordable apartments and 13,801 market-rate units, Crain’s reported
The report is cry to lawmakers not to repeal the abatement, which expires in June and grants tax breaks to new units for up to 25 years. Affordable housing advocates have called to extinguish the program, saying that it gives tax breaks to some of the wealthiest New Yorkers.
“The renewal of 421a is one critical element of the city’s plan to address our housing shortage,” said REBNY president Steven Spinola. “Without 421a, our housing crisis will take an immediate turn for the worse.”
Mayor Bill de Blasio has kept his position on 421a under wraps, but some of his aides have praised the program for creating affordable units in desirable neighborhoods. A recent report said that the end of 421a could freeze development and lower land prices. [Crain’s] — Tess Hofmann