Absence makes the heart grow fonder, or in the case of 421a, it puts massive development projects on hold.
The Astoria Cove development, an affordable housing project planned for the Hallets Peninsula in Queens, can’t move forward without the defunct property tax break, project manager John Mavroudis told DNAinfo. Plans for the development called for 1,700 units, 27 percent of which would be affordable.
“Projects like this were conceived with the 421a in mind,” said Mavroudis, whose firm Alma Realty Corp. is the lead developer of the project. “We rely on its reauthorization in order to move ahead.”
Alma Realty [TRData] bought the site in 2011 for $21.5 million.
The project joins another development stalled by 421a’s absence. In February, the Durst Organization shelved its 2,000-unit Hallets Point complex, saying that project costs were two high without the abatement.
The impact of the abatement’s lapse can be seen in other way throughout the city. A recent analysis by The Real Deal showed that city officials only approved the start of construction on 2,714 new apartment buildings in June this year, compared to 20,724 approved at the same time last year.
Attempts to revive the tax break failed before the legislative session came to a close in June. A proposed replacement program, 421aa, didn’t make it past the State Senate Rules Committee. [DNAinfo] — Kathryn Brenzel