421a tax abatement
Tax Incentives: 421-a
|421-a||Partial tax exemption for NEW MULTIPLE DWELLINGS|
|ELIGIBLE PROJECTS||New construction of MULTIPLE DWELLINGS on lots which were vacant, predominantly vacant or improved with a non-conforming use three years prior to the start of construction. Buildings in the EXCLUSION AREA are not eligible unless they receive governmental assistance, contain 20% affordable units, or the owner participates in the 421-a Affordable Housing Production Program.|
|EXCLUSION AREAS||Generally, buildings within these areas must meet additional affordable housing requirements.|
|BENEFITS GRANTED||Construction period exemption (up to 3 years) plus 10-year (2 years full + 8 years phase out), 15-year (11 years full + 4 years phase out), 20-year (12 years full + 8 years phase out), or 25-year (21 years full + 4 years phase out) post-construction exemption from the increase in real estate taxes resulting from the work.
The longer exemption periods apply in northern Manhattan, the other boroughs, other designated areas, and to projects that receive governmental assistance or contain 20% affordable units.
All rental units become subject to rent stabilization for the duration of the benefits, with initial rents set by the Tax Incentive Programs (TIP).
|PROCEDURAL REQUIREMENTS||The developer applies to TIP and receives a Certificate of Eligibility. The Department of Finance implements the benefits. Benefits may be applied for once construction begins.|
|NOTICES||NOTICE OF ADOPTION OF RULES GOVERNING TAX EXEMPTION UNDER §421-a OF THE REAL PROPERTY TAX LAW OF THE STATE OF NEW YORK|
|HOW TO APPLY||Obtain additional information and request an application by calling (212) 863-8540 or download the following forms, which are available in PDF format.
Submit completed application to: 421-a Program, Tax Incentive Programs, Room 8-C09, HPD, 100 Gold Street, New York, NY 10038. There is a $100 application fee.
|MORE INFO||421-a Legislation Overview and FAQ
Map of Geographic Exclusion Area
Note: All of Manhattan is within the GEA421-a Geographic Exclusion Area (GEA) effective July 1, 2008
NEW FEATURE: New 421-a Rent Calculator (Excel Spreadsheet)
NEW Rental and Homeownership Affordability Calculators (Excel spreadsheet)