The rate of Brooklyn’s housing permits went on a roller coaster ride this summer as builders hurried to begin construction before the lucrative 421-a tax break expired on June 15. Brooklyn gave out 8,499 construction permits in June — more than any other borough. But in July, that number was a meagre 246, reported Crain’s.
The 421-a program gives developers a tax break if at least 20 percent of their units were affordable housing. But as we wrote about last week, not all Brooklyn developers have held up their end of the 421-a bargain.
Builders could have cooled it in June — the law was extended through the end of the year, and a new version of the 421-a is in negotiations. If passed, it will likely require a higher percentage of affordable units and higher wages paid to workers on 421-a sites.
— Jonathan Miller (@jonathanmiller) September 1, 2015
Should we be at all bummed (or overjoyed) by July’s low permit numbers? Nope. Brooklyn’s still in a projected building boom, with more than 22,000 new apartments planned for construction by 2019.