R&E Member Daniel M. Bernstein moderated a panel discussion at the Bisnow New York Affordable Housing Event. Daniel directed the Bisnow discussion of the critical 485-x tax exemption, the 421-a (16) tax exemption and City of Yes proposed zoning amendments with Eli Weiss of Joy Construction; Frank Monterisi of Related; HPD Asst. Commissioner Tricia Dietz; and Office of the Brooklyn Borough President, Antonio Reynoso.
Important 485-x takeaways include:
– Differences from the expired 421-a (16) program (deeper affordability requirements, clear exemption of market units from rent stabilization requirements, broader construction wage requirements, pre-commencement requirements such as notifying Comptroller / efforts to award 25% of applicable costs to minority or women owned businesses & registration with HPD within 6 months of commencement). HPD will be issuing rules which are expected to be in effect by early 2025.
– Similarities to expired 421-a (16) program (calculation of the property tax exemption, similar construction requirements, similar application process, etc.).
– The NYC City of Yes for Housing Opportunity (which upon NYC Council approval will amend zoning laws applicable to residential development) will also be a key development consideration. Will it reduce expensive parking requirements? Allow for larger residential buildings which contain permanently affordable units? The details will be crucial.
– Read more here: https://lnkd.in/eXCKwh27
Important 421-a (16) Reminder:
– Vested 421-a projects (commenced by 6/15/22) can qualify for an extension of time to complete construction (until 6/15/31) if they file a “Letter of Intent” with HPD on or before 9/12/24. https://lnkd.in/eQ_84erM
For more information about 421-a (16), 485-x, the commercial conversion tax incentive 467-m or any NYC development issues, please contact Daniel M. Bernstein or my Rosenberg & Estis, P.C. colleagues.
