April 6, 2017
By the time you read this, New York lawmakers may have already reached a deal to renew the state’s 421-a property tax exemption, which expired in January 2016. But as legislators negotiated the New York state budget, “differences” still stood in the way of renewal, just before lawmakers were scheduled to leave for an Easter break, said Gov. Andrew Cuomo.
“The right resolution is more important to me than just having a resolution,” said Gov. Cuomo near the end of his press conference.
Gov. Cuomo reached a deal between the real estate industry and labor unions back in November. Under the current outline, apartment developers get a 35-year tax break on buildings that include apartments that are “affordable” within certain limits for 40 years, and subject to rent regulation.
Since the rent regulations need to be renewed in two years, there is now a question whether two years is enough time to provide certainty for the 421-a program.
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