421-A Boundaries Shifting Again?
Just a month into the enforcement of new 421-a rules, state legislators are thinking of tweaking them once again. So says our own Sarah Ryley in the latest issue of the Real Deal. Developers were already groaning over the expansion of exclusion area—those places where they have to create moderate income housing along with market-rate…
Just a month into the enforcement of new 421-a rules, state legislators are thinking of tweaking them once again. So says our own Sarah Ryley in the latest issue of the Real Deal. Developers were already groaning over the expansion of exclusion area—those places where they have to create moderate income housing along with market-rate units to get the tax break; it grew to include all of Manhattan and a whole lot more of Brooklyn. Now some politicians want to “amend the lines of the exclusion area,” Ryley reports. “Several elected officials said they wouldn’t have a problem making the exclusion area citywide or toughening the affordability requirement necessary to receive tax breaks.” Assembly member Felix Ortiz thinks making 40 percent of each building affordable sounds like a nice round number. Interesting that this push to amend 421-a is happening during the market downturn, when projects are slowing or even canceling. Why didn’t they push for the measure during the full swing of the building boom?
State Considers Moving 421-A Boundaries Again [The Real Deal]
BrooklynLove,
As usual, you got it right. Just reading about this socialistic nonsense in The Real Deal today. What idiots. How to squash development in one single move. It is shocking that these guys don’t understand disincentives to development in their neighborhoods. Don’t want change cause it affects their current constituency and voting base.
If there were 10 junkies on the corner who represented 51% of their voting public, they would vote for heroin giveaway zones. People hate change.
these politicians are shmucks. they need to crack their econ 101 books and then rethink these proposals.
Killing 421a everywhere instead of leaving some areas with, say, faster tax abatement phase out, or partial abatement, is great for condo market. Kill will so destroy development that overhang of product will be absorbed, eventually leading to higher prices in a few years. And less affordable housing… a huge policy screw up.
“Why didn’t they push for the measure during the full swing of the building boom?”
Cause they are morons!