In February, Gov. Kathy Hochul proposed to extend for four years the June 2026 deadline for completing projects that are eligible for incentives under the now-expired 421a tax breaks in NYC.

Scores of developers raced last June to pour foundations before the June 15 deadline to qualify for the tax breaks, which expired at the end of June 2022. Now, multifamily developers are pushing for an urgent extension of the 2026 deadline. If they fail to meet the deadline, their 421a projects are no longer eligible for the tax breaks.

NYC developers are warning that most of these projects will be canceled or postponed if the June 2026 deadline remains in place because in the current environment they're not feasible—and, if they miss the deadline, whatever financing they were anticipating will evaporate when lenders pencil out the tax breaks.