New York’s 421-a tax break, which allows developers to pay less in taxes in exchange for including income-restricted units in new rental projects, expires Wednesday, with no replacement in sight.
The forthcoming expiration has been causing uncertainty in New York’s commercial real estate industry, as developers claim all multifamily development in the city will dry up as a result. Several say they are unsure of their immediate future plans without 421-a, The Real Deal reports.
Some developers who already had approval have rushed to break ground prior to the deadline, in order to remain qualified for the abatement. Others rushed to file applications in time to qualify, The Real Deal reported: As many as 80 were filed in Brooklyn in the past 12 months, according to TerraCRG.
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