421a(16) not grandfathered by June 15? You may still be lucky!

Everyone who dabbled with any sort of new construction recently, surely heard about June 15, 2022. It was the date when the very popular 421(16) Tax Exemption Program expired, leaving a gaping void in the rental real estate industry, yet to be filled by our legislators in Albany.

There has been a mad rush, when developers and consultants used all of their creativity and brainpower to obtain the required new construction permits, foundation permits in conjunction with a future new building permit, or alteration permits. Most of the go-getters made it in time and now own a valuable development that is eligible for the much needed 421a(16) Tax Exemptions benefits.

But some didn’t make it…and are now sitting around and waiting for our legislators in Albany to come up with a new tax exemption program. The atmosphere in Albany is not favorable of developers and any discussions of an upcoming program is severely less beneficial than the previous 421(16) program.

Do you belong to the latter group? Don’t sit around and wait for a good luck charm to hit your property. Be proactive and meet with developers of your neighboring sites to see how you can build TOGETHER. Do a joint venture or sell your property…but of course, only speak with those developers who have vested the 421a by obtaining the appropriate permits in time. The value lays in those properties only!

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