That plan also didn’t make it into theplan, but there is still a chance that the state will have some kind of program. Supporters of the tax break now hope that legislators can come to an agreement before the current legislative session ends in June and extend 421-a.
“As New York City grapples with a burgeoning housing crisis, leading labor unions, elected officials, research organizations and editorial boards agree with the need for a program to spur rental housing production by the private sector that includes below-market-rate units,” said Real Estate Board of New York President Jim Whelan, construction labor chief Gary LaBarbera and 32BJ President Kyle Bragg in a joint statement.
Critics of the plan, including City Comptroller Brad Lander and the Legal Aid Society, call it a waste of taxpayer dollars that doesn’t produce nearly enough affordable housing units. They prefer for it to lapse in June.
If all the buildings receiving 421-a exemptions in fiscal year 2021 had paid taxes at a nonincentivized rate, the city could have collected $1.7 billion in additional revenue, Lander told Crain’s.
Critics also blasted the fact that the current program allows families earning 130% of the area median income to apply for affordable units. Under Hochul’s revised plan, only families earning up to 90% of the area median income would be able to apply.