NYS Real Property Tax Law Section 421-a(16) aka Affordable NY Housing Program (“421-a”) — Commencement Deadline is June 15, 2022
June 15, 2022 is the deadline for residential NYC new construction projects to commence construction in order to qualify for the 421-a property tax exemption. 421-a can provide a thirty-five (35) year partial exemption from property taxes in exchange for making at least 25% or 30% of rental units affordable and meeting other requirements.
Given the unclear prospects for 421-a’s renewal beyond June 15, 2022, many developers are currently focused on vesting projects for 421-a benefits by commencing construction by the deadline and completing construction by the June 15, 2026 completion deadline.
Rosenberg & Estis, P.C.’s Tax Incentives & Affordable Housing Department, led by Daniel M. Bernstein, has extensive experience representing developers in qualifying projects for 421-a benefits, as well as diligencing 421-a eligibility for investors and lenders. Optimizing a project under 421-a to achieve the best possible return involves meaningful pre-development analysis of affordability, rent stabilization, construction and other requirements.
If you are considering developing, investing in or lending against a residential project seeking 421-a benefits and would like to discuss further, please contact Daniel M. Bernstein at [email protected] or 212-551-1257.