The way the new 421-a tax break program—Affordable New York—is moving through the state legislature, has city officials worried that it will greatly benefit condo developers at the cost of NYC residents and more affordable housing. In the latest version of the bill, State Senators have proposed that the 421-a tax break should also apply condo buildings in the outer boroughs, The Real Deal reports.
In this newest proposal, buildings outside of Manhattan with up to 80 condos would be eligible for tax break program, which is an increase from the 35 units that Governor Andrew Cuomo had proposed in January.
The mayor’s office is calling it a give away to condo developers, according to an interview a spokesperson gave to TRD. The spokesperson added that it would place an undue burden on New York City residents with the city having to pay $120 million more each year over the next ten years to keep this new program afloat. (and billions more overall)
The cost for each affordable apartment would increase to $592,000 from $507,000 when the old version of 421-a was still alive.
After nearly a year of being dormant, Governor Cuomo announced in November that developers and the construction industry had finally come to an agreement over the program. The program expired in 2015 because the two sides couldn’t come to an agreement over wages. It remains to be seen if this will actually be signed into law.