Yet another Astoria megaproject is coming to a standstill due to the expiration of the 421-a tax exemption program in January this year. Developers behind the five-building Astoria Cove project told DNAinfo that the project was envisioned with the tax exemption program in place, and without it or something very similar, it would be impossible to move forward.
Plans at Astoria Cove called for 1,700 apartments spread out over five buildings that would range in size from six to 32 stories. About 27 percent or 465 units would have been affordable. This was an increase from the previous 20 percent the developer, 2030 Astoria Developers had committed to. The plan had received the approval of the City Council in 2014 after these changes, and Mayor Bill de Blasio lauded the site in his state of the city speech last year as an example of the good Mandatory Inclusionary Housing (MIH) would do for the city.
But without 421-a the project isn’t going forward anytime soon. And the impact on such mixed-income projects following the expiration of 421-a has been feared by many real estate analysts for some time now. Yet another project in the neighborhood to be affected by it was the Hallets Point megaproject which was looking to bring close to 2,000 apartments to the neighborhood.
Construction on the first phase of the development got underway early this year, but future phases are now in jeopardy with the absence of the tax break program.
- Demise of 421-a Tax Break Stalls Second Major Housing Development [DNAinfo]
- Astoria's Hallets Point Megaproject Halted Due to Lapsed 421-a [Curbed]
- All the Astoria Cove Coverage [Curbed]