Cuomo Advances New Affordable Housing Tax Break

A lapsed tax incentive for real estate developers meant to increase affordable housing may be getting revived. New York Gov. Andrew Cuomo is advancing new legislation that would replace the tax break formerly known as 421-a which expired in January, 2016. It offered residential developers a tax abatement on properties for decades, so long as some of the building’s apartments were set aside for low- and middle-income families. A proposal to renew it failed after construction unions and real estate developers could not agree on salary issues. Cuomo floated a compromise, but it went nowhere in the state legislature. Now, Cuomo said he was trying again. “It will create about 2,500 units per year of affordable housing, about 9,000 units total,” he said during an appearance on grocery mogul John Catsimatidis’ radio show on Sunday. Cuomo called the expanded tax incentive program “Affordable New York.” Among other new initiatives, it would allow residential housing projects that began construction after December 31, 2015 —after the 421-a program lapsed — to qualify for the tax cut, so long as the residential building breaks ground before June 15, 2020, and is completed by June 15, 2026.

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