Capital New York:
One57, the luxury condominium building on West 57th Street in Manhattan, was thrust into the center of a debate this year about the future of a controversial tax break known as 421-a.
Affordable housing activists railed against a maneuver by lawmakers in Albany in 2013 that allowed developer Extell and four other building owners to receive the lucrative tax break for high-end condos without requiring affordable housing, even though they did not qualify for it.
Yet almost two-thirds of Extell's tax relief last year resulted from a state-controlled property tax system that benefits condos and co-ops, and only one-third came from 421-a, according to a study released Tuesday by the New York City Independent Budget Office.
The I.B.O. found that in the 2014 tax year, Extell received $25.4 million in tax breaks—$16 million from the assessment system and $9.4 million from 421-a, which, come January, will require affordable housing of its recipients with few exceptions.
The eight-page report demonstrates that the abatement pales in comparison to the property tax system in how it affords relief to expensive condos.