Less than two weeks ago, 421-a, the massive tax abatement encouraging residential development in the city for decades, expired. It was because the program's previous renewal dictated an agreement had be reached on fair wages for construction workers. An agreement still has yet to be reached, and now, according to Observer, Gov. Andrew Cuomo is warning against re-establishing the tax break for condominium development.
According to Observer, condos were part of the program until they were cut out last year. Cuomo has since said that including them in any new 421-a plan (and it would require fresh legislation to add them) would be "political dynamite." "That is not a little change. That is a major policy discussion," Cuomo said, noting that it would run up against Mayor Bill de Blasio, the Democrat-dominated New York State Assembly, and even him.
As for the failed negotiations that resulted in the expiration of 421-a, Cuomo was among the many surprised by it. "I think everyone was surprised," he said. "I think most people agreed they would reach an agreement."
While Observer reports insiders believe a new 421-a bill will be put through the Legislature, it might come down to a compromise brokered by Cuomo. "It might be a totally different approach and a totally different program," the governor said.
· Cuomo Warns Compromise on New 421a Program Would Be 'Political Dynamite' [Observer]
· Everything You Need to Know About NYC's 421-a Tax Program, Poised to Expire Today [Curbed]
· All 421-a coverage [Curbed]