NY Times: 421-a Program Outdated, Unfair
The 421-a program created under John Lindsay to stimulate residential development made sense at a time when no one wanted to touch New York real estate but is nothing but a free lunch to developers, according to The New York Times op-ed page. In the most recent fiscal year, the program gave developers $400 million…
The 421-a program created under John Lindsay to stimulate residential development made sense at a time when no one wanted to touch New York real estate but is nothing but a free lunch to developers, according to The New York Times op-ed page. In the most recent fiscal year, the program gave developers $400 million in tax breaks and resulted in very little benefit to the middle- and lower-income earners who need the help the most. In an attempt to scale back — but not eliminate — the program, Mayor Bloomberg has proposed creating an “exclusionary zone” in much of Manhattan as well as Dumbo, Brooklyn Heights and the Queens waterfront (check out the map on the jump). Both the J Condo and 85 Adams in Dumbo have benefited from the 421-a program. This is a start, opines The Times, but it ain’t good enough. “While Mr. Bloomberg has been aggressive and innovative in his efforts to create housing for people at the low end of the income scale,” write the editors, “a much stronger push for reasonably priced apartments will be needed if New York is going to hold on to its middle class.” Do you agree?
Ending a Housing Giveaway [NY Times]
421-A Program May Get Extended [Brownstoner]
Dumbo Condos Affect by 421-A Proposal [Dumbo NYC]
Keep it!!!
Very simple…Land value will drop dramatically plus construction cost are way too high to make developers put out these units…its unfair for them, they change this city risk alot of money and if the city want affordable housing so much…let them build it…but they wont cause they know its not feasible…instead the are putting up nice apts on the LIC waterfront…thats hypocritical dont you think
In this market, the developers will still charge the same high prices even without the abatements in place. The abatement helps people like me who are by no means rich. NYC is slowly turning into a city that caters to the rich and to the poor. The middle class gets pissed on with every new law that gets passed.
I understand that is the theory behind it, but we both know that the developers would squeeze the buyers as much as possible….
kvn,
the reduced monthly expenses translate into higher sales prices that go into the developers pockets. If there weren’t the tax breaks and there were higher monthly charges, the prices would be correspondingly lower.
Keep it!
I say reform it, but keep it.
The 421a is a vital tool for development in NYC,
especially in Brooklyn. Dumbo is not be the best example, but the Tax abbatement DOES protect the middle class, particularly first-time buyers.
I’m not talking about the developers, but their customers. Most of these folks take out big mortgages, and with the combined maint, mortgage, and taxes, they are living month-to-month. the 421 break is often a critical element
for these buyers being able to make the $ work.
Look the system is being abused, and needs reform. But it has helped many middle class first-time buyers get a foot in the door, a hard thing to do these days, given prices in nyc. Reformed correctly, it could continue to do this, and also encourage development in neighborhoods that need a shot in the arm.
agreed 100%. not dumping it across the board will create an unequal amount of condo activity in areas excluded from bloomberg’s phase out. all or nothing.
relatedly, do we really need to encourage condo activity in williamsburg? because that is what this will do.
_Mayor_ John Lindsay?
I completely agree. I can’t afford to live in the slope anymore. I have 2 kids and have been out of college for 10 years, and though I am a skilled knowledge worker, salaries don’t match the rental increases of the past 5 years.
Dump it!
Even with an affordable housing incentive, it is a tax break for the rich.
There’s a boom (they say) in NYC development, if we all have not noticed…421a needs to go the way of CBGBs and last call at 4am (soon to be gone).
We had fun while it lasted ( I mean CB’s), time for the developers to have “last call.”