REBNY Warns of 421-a Proposal Danger

NEW YORK CITY-Mayor Michael Bloomberg is expected to sign 421-a, tax exemption legislation, into law on Dec. 28. The city council passed the bill on Wednesday. And while the mayor has lauded the bill that revises an out-dated 1971 law, the Real Estate Board of New York says the law would endanger future jobs, tax income and housing.

“The statistics make it clear that the 421a program needs to be tweaked, but the new bills being considered will severely stifle the construction of new housing units instead of encourage it,” say REBNY president Steven Spinola in a release. “Is the city saying the housing crisis is behind us?”

The new bill is part of the city’s effort to build or preserve 165,000 units of affordable housing by 2013, which the mayor outlined earlier this year in his New Housing Marketplace Plan. “With this bill, the administration and the council struck a balance between maximizing affordable housing for low-income New Yorkers while also continuing our recent housing boom for the middle class that is closing the housing gap.” says Deputy Mayor Dan Doctoroff, in a statement.