Expiration of NYC's 421 Tax Break Hinders Multifamily Projects

Some projects that missed the June 15 deadline due to construction delays are put on hold.

By Jack Rogers | July 13, 2022 at 06:56 AM

Multifamily developers with projects in New York City facing construction delays—projects that were eligible for 421 property tax exemptions—say they’ve been left holding the bag by the NY State Legislature, which let the tax credit known as Affordable New York expire last month.

The 421 tax provision, first enacted 51 years ago, offered a property tax exemption for housing projects in NYC that include a percentage of units designated for lower-income residents. According to a study by NYU’s Furman Center, nearly 70% of rental housing built in the past decade in NYC used the tax abatement.

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