The state's 421-a tax break program will expire Friday night after real estate developers and construction labor unions could not reach an agreement on how to reform the law before Friday's deadline.
Losing the tax abatement program will result in the loss of 18,000 newly built affordable rental units over the next four years, according to a city analysis. Without the benefit, developers will instead produce market rate condos, according to the Real Estate Board of New York, the developer group that had been negotiating a deal.
When the program expired in June, Gov. Andrew Cuomo said renewing the abatement — first implemented in the 1970s to spur housing development during a fiscal crisis — must include some form of a prevailing wage requirement for construction workers for buildings with 15 or more units participating in the program.
He gave the Real Estate Board of New York and the Building and Construction Trades Council seven months to hash out an agreement.
They failed.
10 comments:
"will result in the loss of 18,000 newly built affordable rental units"
Sounds like good news to me, Remember we are in an island already packed and sealed in like a can of mixed nuts. Figure 4-6 people per unit = over 100,000 less people.
I bet the dope smoking NY mayor and his prodigious hallucinative visions are having a fit.
glad this happened -
Economics 101
supply versus demand
Do you believe people buy more at lower prices and less at higher prices?
Do you believe that sellers want to sell more at higher prices and less at lower prices?
If you agree: Then you believe that markets work.
(When government and regulations do NOT interfere)
Learn it, Live it, Love It!!!
Good site.
Economics 101 revisited:
Do you believe that unmitigated harvesting of natural resources constricts supply of those resources until they become scarce, luxury items?
If you said "yes" you realize free, unregulated markets are unsustainable and in direct conflict with a finite supply of natural resources.
"a finite supply of natural resources."
Nonsense. I was told in the 1970's we'd be out of oil by 2000.
Truth is we have so much oil now, prices are way down.
We have more natural gas then we've ever had.
We have megatons of clean coal.
If you need electricity, fire up up few gen4/5 reactors. They leave no waste.
Stop whining, and get out our way!
If you want to fail for guilt reasons, move to a Communist country. They all fail.
But stop getting in our way.
No more tax breaks for A-Rod and the likes !
Why should someone with a multi million dollar Manhattan apartment pay less yearly property tax than a small modest home in the outer boroughs ?
Answer - 421-A = Welfare for the rich !
Last Anon
You are correct.
Welfare for any interferes with free markets, whether it is for rich or poor, personal or corporate.
It ALWAYS brings about unintended consequences
The Food Stamp Program, administered by the U.S. Department of Agriculture, is actually proud of the fact it is distributing the greatest amount of free meals and food stamps ever.
Meanwhile, the National Park Service, administered by the U.S. Department of the Interior, asks us to "Please Do Not Feed the Animals."
Their stated reason for the policy is because the animals will grow dependent on handouts and will not learn to take care of themselves.
Stop ALL welfare!!!
"Stop ALL welfare!!!"
Well, the expiration of this antiquated and abused provision is a good start, for corporate welfare has become a heavier burden than anyone reliant on food stamps and section 8 (a program that is virtually non-existent to truly take care of the needs of the continuing growth of the destitute and the shrinking of the middle class). And the majority of workers were undocumented and firms hired by the city were ripping them off (Of course no jail time for these scumbags, just a fine will do and the reimbursement of the money they stole. Speaker Melissa's recent offense and charge has just started a dangerous precedent).
How much money do these predatory developers in REBNY need to hoard for themselves anyway? How can any progress be made and the homeless crisis be curbed by denying the workers building their tumor monoliths proper wages. And if they are even aware how sadistic they look by paying them piddling hourly wages with no OT, thus making them unable to afford even the supposed affordable apts. they are building. Wanna bet they gleefully do.
And what's going to happen to all these new projects. Are they going to stay in their skeletal states? And you wanna bet that the majority of homeless are going to encamp by and probably inside the lots like in the former slums on the L.E.S. and the Bronx in the 70's and 80's.
And if they are going to finish these buildings, who the hell is going to afford them. The Hunter's point building is having trouble finding tenants for the market rate units, even one tenant there used airbnb to be able to afford it.
Since it was recently decided by the Dept. Of Treasury that they are going to track the finances of LLC's and individuals who buy apartments for over a million, surely they will probably decide to launder their money in regular market rate apartments that were supposedly promised by Mayor One City.
Is it only Mid-January? Cause this year is already shit.
Cuomo "We want a law that gives people housing for cheaper than cost, and we want to pay the people who build them more money than most others earn"
Yeah, thats a great combo. I wonder why they didnt all jump in to agree on it.
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