NEW YORK CITY—New York City’s 421-a Property Tax Exemption Program, a measure meant to incentivize residential housing development, recently expired, only to be renewed with modifications for four years. While the overhaul of the program has elements that developers should like, Governor Andrew Cuomo has made continuation of the law contingent on a prevailing wage negotiation that has the potential to make new rental projects risky.

Created in the 1970′s in an effort to spur New York City housing development and keep city residents from fleeing to the suburbs, the 421-a Property Tax Exemption Program was available for multi-family developments on sites that were either vacant or underutilized. Under its provisions, landlords were exempt from paying the increase in property taxes that resulted from their new developments.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.