In April of 2024, as an incentive for the development of affordable housing outside of NYC, NYS enacted Real Property Tax Law (RPTL) Sections 421-p (“421-p”) and 421-p*2 (“421-p*2”), which authorize municipalities outside of NYC to pass local laws providing property tax exemption benefits for the development of affordable housing. The City of Kingston is the first to opt into 421-p and 421-p*2.
421-p provides a twenty-five year property tax exemption for certain newly constructed or recently renovated residential rental buildings of at least ten apartments in which at least twenty-five percent (25%) are affordable.
421-p*2 provides for a ten-year property tax exemption for certain newly constructed or recently renovated attached or detached accessory dwelling units which provide independent living facilities as defined by the City’s code.
If you have questions about Kingston’s 421-p or 421-p*2 programs, please contact Daniel M. Bernstein at [email protected] who authored this post. We will be watching to see when and how other NYS municipalities implement 421-p and 421-p*2 and how residential developers, lenders and other stakeholders find these programs.