Pratt Center Opines on 421-a Program
With all the debate recently about renewing the 421-a tax incentives for developers, the Pratt Center and Habitat for Humanity NYC got together to try to assess how much the program has benefited affordable housing. The study looked at ten buildings around the city, including two in Brooklyn (182 Montague, above, and 85 Adams). The…
With all the debate recently about renewing the 421-a tax incentives for developers, the
Pratt Center and Habitat for Humanity NYC got together to try to assess how much the program has benefited affordable housing. The study looked at ten buildings around the city, including two in Brooklyn (182 Montague, above, and 85 Adams). The bottom line? Developers have made out like bandits. Since its inception, the program has subsidized over 100,000 units — only 8% of which are affordable or to low or moderate incomes. The average unit in the ten buildings received $73,000 of tax breaks over its lifetime and not a single one included a two-bedroom rental for less than $2,000 a month.
In its present form, the 421-a program is a massive misuse of the tax dollars of New York City residents. It continues to subsidize luxury homes in expensive neighborhoods, with nearly 80% of the benefits going to Manhattan. It subsidizes buildings that would have been built anyway – at an annual cost to the City of $300 million and rising fast. And it creates very little affordable housing.
Our opinion: It seems pretty hard to justify in this day and age.
Reforming NYC’s 421-a Program [Pratt Center]
NY Times: 421-a Program Outdated, Unfair [Brownstoner]
Controversial 421-a Program May Get Extended [Brownstoner]
I think some reform to help spur afforable house with 421-a would be a better service to everyone, but also don’t mind that it also helps out other more expensive developments. My real hope is that in 10-15 years when the city finally starts collecting all the extra tax from this recent construction boom they spend it wisely to improve the city for everyone. IE more and better trains to underserved areas
Doubtful, Anon 11:12am. If they actually access on Sq ft. and land, home owner’s taxes might go up a touch, if at all. The massive tax income that would flood the City’s coffers from PROPER taxes paid by all should offset any increases in the long run…expect for those who enjoy the 421a tax abatement.
Fair is fair.
I am up for a reform as well, but I wouldn’t be suprised if across the board the prop tax for existing condo/coops would go down and for single-family home would go up if you do it by sqf alone.
i’d be shocked if 421-a spurred substantial development in the last 10 years that wouldn’t have happened anyway. all it likely did is raise the prices people are willing to pay, thus lining the developers’ pockets.
Back on topic, English aside, Iceberg, wha?
“Luckily, the tax abatements have made the economics of development projects realizable”
“Poor old Granny and Firefighter Joe” are not the middle class/working class folks who can AFFORD these new luxury condo 421a buildings. Please open your eyes.
The original program may have spurred dev in underdeveloped areas, but open your eyes and read the report. 8% of ALL the 421a expeditions went to affordable hosing in 2003, that 92% going to non-affordable housing developments. Both you and I are smart enough to know what the majority of those developments were: luxury condos in desirable nabes or up-in-coming ones.
Whether we thing it should be thrown out, or fixed…at a minimum, it needs a MAJOR reform. I agree with the Pratt Center’s recommendations, in fact I don’t feel they go far enough.
My 2 cents.
As far as Anon 9:47am, as a single home owner paying double the taxes you are, for approx. the same amount of space (I have a small row house), regardless how you spin it, I find it unfair that I and my neighbors in this City will share the unfair tax burden that developers and lucky buyers like yourselves are enjoying. Plain and simple. Pay for what you bought with a proper tax assessment. Balance the playing field all the way around.
Fair is fair. As a middle class working stiff who struggles to make my mortgage payments, I’d love to pay less taxes (which are not as bad as they look, compared to other parts of the country), but my reality is I pay what I was assessed for, without the shenanigans of the faulty 421a program.
Whew, that was a long one.
If others have the nerve to critize English (written while being at work, between 10 tasks I have to handle at the sametime) and therefore and not addin anything else to to the topic, you bet.
Anyway I am off for now here – I have to say it is fun being a troll for an hour…
10:18 do you feel the need to boast about sucesses in your life to compensate for other shortcomings.
This statement:
“Getting head around English -> living a damp garden rental from paycheck to paycheck”
really makes absolutely no sense as I’m am positive there are quite a few people where this is not the case, but nice try though.
Here is the difference – 10:18:
Getting head around English -> living a damp garden rental from paycheck to paycheck
Getting head around research -> making a nice living… my brownstone is not far away – one or two bonuses I reckon. Considering that I arrived just a few years ago with less than 20k to my name and the important 3 letters (PhD) I so don’t care about my English skills. Children will go private school anyway….
Sounds like you’re too stupid to get your head around proper English.