Friday, July 17, 2015

Tax benefits are lucrative for builders of luxury high rises

From 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.


JQ said...

This is plain robbery. But not in Mario's son's and REBNY's New York, it's developer and investor welfare. These dwellings will only be occupied by the 1% of China since their economy is volatile right now and these towers will be convenient safety deposits for their loads of cash, in addition to those energy barons in Dubai and Saudi Arabia.

In fact this billionaire's row is just a lame imitation of Dubai. And there will be higher tumor/tower down the block where the steinway showroom used to be.

Anonymous said...

and in return the developer will be contributing to the campaigns of the politicians who approve this kind of tax relief for the wealthy.

Anonymous said...

When the Government gives a tax abatement it is the same as a drug dealer giving away free samples, the real money gets made down the road.

Anonymous said...

How is this OK? They get tax breaks, we get taxed. Not even pretending to provide affordable housing with this, wouldn't do for the billionaires to rub elbows with the middle class.

Anonymous said...

Bring back the poor door's!

The stories in the NYPost are so amusing!

Joe said...

The Neo-Marxist Government has been collecting data and has been setting up the domino's to screw them royally!!!