8 thoughts on “UrbaNerd: Really, it’s OK if You Don’t Understand 421-a

  1. Just a couple of other facts. The 2006-08 reforms designed to increase the production of affordable housing apparently had the opposite effect. Most of the units grandfathered in under the old rules were completed by around 2011 and the the number completed under 421a since then has declined.per a recent Independent Budget Office report. Also, of course, the only good excuse for a tax incentive is that taxes are too high. A recent Furman Center report noted that the rent for a one bedroom apartment in a new outer borough mid-rise has to cover about $1,200 a month in property taxes. Generally, property taxes on apartments in New York City are 5-6 times the taxes on similarly valued properties in other U.S. cities.

  2. The real problem is that new developments pay taxes on 100% of cost, while older buildings pay taxes on much lower percentages of value. As new buildings cost more, this means that they pay 2-3x the property taxes of older buildings, which makes them less economical to build. SImply limiting to the abatement so that they pay similar property taxes to neighboring buildings would eliminate this disincentive and get the politics out of this…

    • Developers should pay taxes on the current value of the land, period. The existing buildings should also pay taxes on the value of the building and the property on which it stands. If renters were given a tax rebate on the rents they pay as well as a requirement of landowners to pay taxes on the value of what they owe, rents could normalize, property values would normalize and more working class New Yorkers could invest in their homesteads.

      Where is Bloomberg (he’s responsible for greedy developers trying to maintain their wealth on the backs of the working class New Yorker who is struggling to stay out of poverty)?

      Property near high valued real estate near train lines, Empire State Building, World Trade, other high revenue generation areas should pay taxes based on the value of those properties.

      Tax Abatement should have gone by the wayside by now for greedy developers. They’ve ruined the rest of the country with the cheap constructions of the buildings they build (where they charge high rents.) to collect profits.

  3. look at all the buildings in long island city luxury buildings with 421a tax abatement’s….the only good thing is they are condos and the owners will be really hurting in a few years when they have to pay full taxes on their million dollar 2 bedroom overlooking the LIRR tacks…can you say massive defaults…

  4. as usual there should have been no tax abatement’s for luxury buildings…instead build $125k 1 bedroom apartments, so people can actually afford them….and once those apartments say go over $150k adjusted each year for COLA… then full taxes will be paid that should limit any non affordability issue in the future

  5. The
    record of Mayor de Blasio on Latino inclusion in his administration has been a source of an on-going nearly two year controversy. Howard Jordan of The Jordan Journal heard Fridays 3-5 p.m. on WBAI interviews Gerson Borrero Editor-at-large of City and State, Javier Nieves of the Campaign for Fair Latinos Representation, and Robert Perez, Deputy Commissioner of Community Affairs for de Blasio. Last week this debate came to a head when the Mayor was booed at the Dominican Day Parade and City/State published a column by Borrero entitled “Latino Heat on de Blasio Brings “Kitchen Cabinet” Meeting to City Hall” (August 12 cityandstateny.com) with questionable denials from City Hall. The controversy
    grew when Arnie Segarra, former Special Assistant to Mayor Dinkins appeared on NY1’s Inside City Hall offering a dismal defense of the Mayor’s record on Latinos. To listen to the interviews
    press or type link into your address bar http://bit.ly/1Nje5Si

    • There are Latinos in his administration, perhaps not enough Dominicans to suit the tide of the attitude of the typical Dominican. There are Puerto Ricans, South Americans, spanish speaking people in his administration, it’s working.

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