ABO Developments - Spring 2015 - (Page 11)

Spring 2015 State Legislative Agenda Three Key Industry Regulations Up for Renewal BY S T E V E N C U T L E R T his spring the New York State Legislature must rule on three major pieces of legislation crucial to the building community, all set to expire in June: 421-a, J-51 and rent regulation. The 421-a Tax Exemption: A Key Stimulus to Development One of the primary triggers of housing development in New York City in recent decades, the 421-a Tax Exemption Program provides a property tax abatement for newly constructed multi-family residential buildings. Set to expire June 15, the 34-year-old program, which in many areas of the city requires new developments to make 20 percent of their units affordable, has been a key stimulator of low-to-middleincome housing in New York. The debate over the tax exemption is fierce. Several dozen tenants groups, including New York Communities for Change, Make the Road New York and the Legal Aid Society, want the tax abatement ended, claiming the more than $1 billion per year in revenue awarded developers should go directly into subsides for affordable housing. Critics say 421-a, instituted in 1971 to stimulate housing development when the city's economy was in dire straits, has in recent times provided an unnecessary tax break for developers of ultra-luxury condominiums. One high-profile project, Extell's One57, has become the posterchild for unintended consequences of the program. Apartments in the building have sold for an average of over $26 million, yet will pay an average of just $5,230 in property taxes in 2015. So much for luxury condominiums in the hottest real estate markets in Manhattan. But how will any sort of rental Spring 2015 | 11

Table of Contents for the Digital Edition of ABO Developments - Spring 2015

A Message from ABO Executive Director Dan Margulies
BuildingsNY 2015
Spring 2015 State Legislative Agenda Three Key Industry Regulations Up for Renewal
Energy Market Forecast: What it Means for Your Energy Buying Strategy
Asbestos Testing Is Back, Bigger and Broader
Index of Advertisers/Advertisers dot com

ABO Developments - Spring 2015

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