Re-examining the Need for 421-a Subsidies
While we weren’t down with their methods, the folks from ACORN who stormed the Beacon in Dumbo a couple of weeks ago did have a point: It’s kinda silly that development subsidies put in place to stimulate building in the depths of the seventies market funk are still being used to put up luxury condos…
While we weren’t down with their methods, the folks from ACORN who stormed the Beacon in Dumbo a couple of weeks ago did have a point: It’s kinda silly that development subsidies put in place to stimulate building in the depths of the seventies market funk are still being used to put up luxury condos in fancy neighborhoods in the biggest real estate bull market ever. Ariella Cohen digs a little deeper on the subject in this week’s Brooklyn Papers and finds that, in addition to the Beacon (which she reveals is 75% sold!), there are another 28 buildings currently in construction in the borough’s more upscale nabes that are benefiting from the same 15-year tax break. Except for the recently rezoned Williamsburg and Greenpoint waterfront, these subsidies carry no requirement to include affordable housing.
Dated Perks Subsidize Luxury Condos [Brooklyn Papers]
People talk so loosely about ‘affordable housing’. Affordable to who? The tax abatement on my condo made it affordable for me an my family to live here in Cobble Hill. But we make over $100,000 a year. Do we count? What’s the cut off?
Better yet, I’d really love a one-bedroom condo near the water in Dumbo. Got any extra downpayment cash you could spare?
Brower Park, I think you should set a good example and help me pay my rent…Whaddya say? Could you kick in like $500/mo.? It would really help…Thanks, Dude.
Josh, obviously from the article, and just everyday observation all over the city, developers are having no problems putting up buildings. If there were no stipulations to provide any kind of affordable housing at all, there would be none. The cost may be passed along to new luxury owners/renters, but somehow I can’t get too worked up about that. A thriving and vibrant city needs to have housing up and down the economic spectrum, not just stacked up on the side of the rich.
The entire property tax structure needs to be revamped. It is absurd that a non-421a 2 bedroom condo in carroll gardens can face upwards of $7000 in taxes, while a 4-storey brownstone across the street pays $2000
If the city is going to cut the tax abatements then it should also relax zoning and remove the “affordable housing” requirements. The NYC market is far to hard to develop in now, and those costs are passed along to the people who pick up these new units.
I think it would be interesting to see if Walentas gave a nice donation to Acorn and then sicked them on Boymelgreen’s 85 Adams project. I mean, come on, every new condo development in NYC is getting these abatements.
You expect more than a wimper? – you think D.Goldstein is going to be complaining about a tax program that lets him pay next to nothing in RE taxes on HIS million dollar condo – in fact w/ his $400 rebate the City may actually be paying him RE taxes.
Good point Acorn is making. All this whining about subidies for Ratner but plenty of lux buildings going up that subsidize only the affluent and not a whimper from the anti-AY folks.