Post by Category : Tax Abatement

421a tax abatement

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.

  • 421-a Online Application
  • 421-a Online Application FAQ (in PDF)
  • 421-a Paper Application Forms (in PDF)
  • Frequently Asked Questions about the 421-a Program (in PDF)
  • Professional Certification of Plans for Applications Under 421-a Partial Tax Exemption Program (in PDF)
  • Architect’s/Engineer’s Certification of the Aggregate Floor Area, Dwelling Units & Room Count (in PDF)
  • 421-a Application forms for Final Certificate of Eligibility (in PDF)

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.
Summary of office hours:
Walk-in hours: Mondays and Wednesdays 10:00am-12:00pm and 1:00pm-3:00pm
Appointments: Tuesdays and Thursdays 9:00am-12:00pm and 1:00pm-4:00pm
No walk-ins or appointments on Fridays. Customers may still call customer service at (212) 863-8540 or for help on the online application, please call at (212) 863-5760.

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 

  • Brooklyn Part I
  • Brooklyn Part II
  • Bronx
  • Manhattan
  • Queens
  • Staten Island

NEW FEATURE: New 421-a Rent Calculator (Excel Spreadsheet)

NEW  Rental and Homeownership Affordability Calculators (Excel spreadsheet)
Please visit the following links on NYC Department of Finance webpage for additional information regarding which properties are receiving 421aand to look up a specific property or apartment to find information regarding its benefit start and end dates, current benefit year, and benefit amount.