421-A EXEMPTION & ABATEMENT

Offered For: New Construction Residential buildings, or Existing building adding more than 50% of square footage

The 421-a(16) Affordable New York Housing Exemption program is a partial tax exemption available for new buildings constructed throughout the five boroughs, with a minimum of 6 residential units. In order to qualify for the abatement, 25-30% of the units must be allocated for affordable housing in accordance to one of three options available.

See below a detailed chart of the three options available.

Option A

• 25% of the units must be affordable; at least 10% of AMI, 10% at up to 60% AMI, and 5% at up to 130% of AMI.
• The project cannot receive any government subsidies other than tax-exempt bond proceeds at 4% tax credits.

• 30% of the units must be affordable: at least 10% at up to 70% of AMI and 20% at up to 130% of AMI.

• at least 30% of the units must be affordable at up to 130% of AMI;
• the project cannot receive any government subsidies
• the project cannot be located south of 96th Street in Manhattan or in any other area established by local law.

The affordable units must be marketed with the New York City Housing Preservation and Development (HPD) as detailed below. The 421-a exemption will retain the property taxes based on the Base Year (A year prior to construction) Assessed Value for up to 3 years during construction and for a 35-year period post construction.

Prevailing Wage
If building of e then 30 Units All building service employees employed by the applicant at the extended affordability property shall receive the applicable prevailing wage for the entire extended affordability period.