421-a(16) Amendment for Certain Large-Scale General Developments

A new law in the State Budget narrowly expands the otherwise expired 421-a(16) Affordable New York program by amending the definition of “Eligible Multiple Dwelling” to cover future residential buildings on certain large-scale general development sites, even if those buildings commence construction or are completed after the ordinary 421-a(16) deadlines. To qualify, the building must be on a parcel within a tract that received a NYC large-scale general development special permit through ULURP on or before June 15, 2022; the tract must include a multiple dwelling that commenced construction after December 31, 2015 and on or before June 15, 2022; and the new building must satisfy 421-a(16) Affordability Option A, B, D, E, or F. The amendment is narrow and will not assist most new projects; developments that do not qualify should evaluate other as-of-right incentive programs, including RPTL 485-x. Read more about other NYC tax incentive programs in Daniel M. Bernstein’s blog post here: “Critical Tax Incentives for NYC Residential Development in 2025 and Beyond: 485-x, 467-m, and 421-a.” Sign up for the Bisnow New York Affordable Housing Conference on July 22nd, where Daniel will be moderating a conversation about public-private partnerships with David Schwartz of Slate Property Group and Adam Phillips of NYC Department of Housing Preservation & Development.

 

For more information about property tax incentives such as 421-a(16), 485-x, and related programs, please contact your trusted R&E attorney, Daniel M. Bernstein, or Nicholas DiLorenzo.