Trending

Lawmakers predict extension of 421a tax break

Program, as well as rent regulation laws, is set to expire in June

From left: Bill de Blasio, John Flanagan and Carl Heastie
From left: Bill de Blasio, John Flanagan and Carl Heastie

Members of the state senate and the assembly both believe that the 421a tax abatement — which is set to expire next month along with the state’s rent regulation laws — will be extended.

“I don’t think it’s going to be just 421a,” Senate Republican leader John Flanagan told Capital New York. “There’s going to be a variety of issues that are going to come up in conjunction with that.”

The tax break, as well as rent regulation laws are set to expire on June 15.

Sign Up for the undefined Newsletter

Meanhwile, Mayor Bill de Blasio has proposed a set of reforms, which includes applying the tax break only to rental buildings and implementing a mandatory 25 to 30 percent of affordable units. Under the mayor’s proposal, the program would extend 35 years instead of the current 25. State politicians didn’t say whether or not they would implement de Blasio’s proposal, according to the website.

The chair of the senate housing committee, Senator Cathy Young, told Capital that she hadn’t yet seen the mayor’s package of proposed reforms, which is backed by the Real Estate Board of New York.

Flanagan predicted “some renewal” of rent regulations, the website reported. Others predicted that the program — as well as rent-regulation rules — could be renewed in its current form.

“That’s an option, to see where we go on all of these issues. It’s an open issue,” Assembly Speaker Carl Heastie told Capital. “We’re in the midst of putting together where we are. I reviewed the (de Blasio) plan and I understand where the mayor is coming from, but we’ll address it with the entire conference.” [Capital NY PRO] — Claire Moses

Recommended For You