The naysayers of tax abatement program 421-a have new ammunition. The New York Times reported that developers of almost 200 buildings citywide — the majority in Brooklyn — failed to meet the requirements of the 421-a program. Close to 2,500 apartments subsidized by the program have neither been made into affordable units nor put on a rent-stabilization roll as required.
Without the regulation of rent stabilization, owners may remove tenants and sell the units at their convenience.
On Tuesday, three agencies sent letters to building owners requesting they register units as rent-stabilized immediately. The agencies — the New York City Department of Housing Preservation and Development, the state attorney general’s office, and the state Division of Homes and Community Renewal’s Tenant Protection Unit — further alerted owners that if they fail to comply they chance returning the tax incentives received from the 421-a program.
The letters were initiated by a tenant complaint, but trouble in relation to 421-a is longstanding. The program forgave $1,000,000,000 in taxes in 2014.
Nearly 200 Buildings in New York City Flouted Tax Rules, Officials Say [NYT]
421-a Coverage [Brownstoner]