State lawmakers bundled various housing policies into one comprehensive budget bill, addressing property tax breaks, tenant protections, office-to-residential conversions, and renovation rules for rent-stabilized apartments.
The legislation, negotiated by Gov. Kathy Hochul and advocated for by Mayor Eric Adams, has drawn mixed reactions from real estate and tenant groups. Despite the criticisms, Hochul praised the bill for its focus on increasing housing production while enhancing tenants’ rights.
One significant aspect of the legislation is the introduction of 485x, also known as Affordable Neighborhoods for New Yorkers, as a replacement for the expired 421a tax break for multifamily projects. This new program increases affordability requirements for tenants and wages for workers while extending the tax exemption period and mandating permanent affordability for income-restricted units.
So, the long-awaited tax break from developers is here. Now, they must figure it out.
