Adopted by the state legislator to increase housing production, the NYS budget for Fiscal Year 2025 introduced two new programs, in addition to extending the 421a deadline.
The completion deadline for the now-expired 421a program has been extended for projects that commenced construction on or before 6/15/2022. This extension is only applicable for projects that comply with affordability Options A, B, D, E, or F. Additionally, developers will be required to file a Letter of Intent with HPD. This will need to be done within 90 days of HPD issuing the Letter of Intent form (mandated to be available by 6/19/2024).
Click below for a more detailed explanation of the 421a extension; requirements, timelines, etc.
A new tax incentive program, 485-x, replaces the expired 421-a program. To qualify for the program, projects must allocate 20-25% of the units to permanent affordable housing at a weighted average of 60% or 80% AMI, depending on various factors such as project size and location. Units that are free market will not be subject to rent stabilization. Additionally, certain projects are required to pay construction wages and all projects must solicit from M/WBE firms for construction trades. Contrary to the 421a program, the 485x application filing fee depends on a project size and can vary between $3,000 and $5,000.
Click below for a more detailed explanation of the 485x program; requirements, timelines, etc.
This initiative offers a tax exemption for ‘commercial to residential conversion’ projects. The benefit schedule runs between 25 to 35 years, depending when the project commences construction. To qualify for the program, developers need to prove that the building was predominantly occupied for commercial, manufacturing, or other non-residential purposes. Projects must contain as least 6 rental units of which 25% is to be allocated to affordable housing. Additionally, projects with more than 30 units will be required to pay prevailing wages.
Click below for a more detailed explanation of the 467m program; requirements, timelines, etc.
As always, Metropolitan Realty Exemptions stands at the forefront to assist with property tax and zoning incentive programs available in NYC. Please reach out to us to discuss your project and find out which programs it may qualify for. We look forward to hearing from you!
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