421a tax abatement
Tax Incentives: 421-a
|421-a||Partial tax exemption for NEW MULTIPLE DWELLINGS|
|ELIGIBLE PROJECTS||New construction of MULTIPLE DWELLINGS on lots which were vacant, predominantly vacant or improved with a non-conforming use three years prior to the start of construction. Buildings in the EXCLUSION AREA are not eligible unless they receive governmental assistance, contain 20% affordable units, or the owner participates in the 421-a Affordable Housing Production Program.|
|EXCLUSION AREAS||Generally, buildings within these areas must meet additional affordable housing requirements.|
|BENEFITS GRANTED||Construction period exemption (up to 3 years) plus 10-year (2 years full + 8 years phase out), 15-year (11 years full + 4 years phase out), 20-year (12 years full + 8 years phase out), or 25-year (21 years full + 4 years phase out) post-construction exemption from the increase in real estate taxes resulting from the work.|
The longer exemption periods apply in northern Manhattan, the other boroughs, other designated areas, and to projects that receive governmental assistance or contain 20% affordable units.
All rental units become subject to rent stabilization for the duration of the benefits, with initial rents set by the Tax Incentive Programs (TIP).
|PROCEDURAL REQUIREMENTS||The developer applies to TIP and receives a Certificate of Eligibility. The Department of Finance implements the benefits. Benefits may be applied for once construction begins.|
|NOTICES||NOTICE OF ADOPTION OF RULES GOVERNING TAX EXEMPTION UNDER §421-a OF THE REAL PROPERTY TAX LAW OF THE STATE OF NEW YORK|
|HOW TO APPLY||Obtain additional information and request an application by calling (212) 863-8540 or download the following forms, which are available in PDF format.|
Submit completed application to: 421-a Program, Tax Incentive Programs, Room 8-C09, HPD, 100 Gold Street, New York, NY 10038. There is a $100 application fee.
|MORE INFO||421-a Legislation Overview and FAQ |
Map of Geographic Exclusion Area
Note: All of Manhattan is within the GEA421-a Geographic Exclusion Area (GEA) effective July 1, 2008
NEW FEATURE: New 421-a Rent Calculator (Excel Spreadsheet)
NEW Rental and Homeownership Affordability Calculators (Excel spreadsheet)