Developers have warned that Mayor Bill de Blasio's plan to build 80,000 units of affordable housing would be in jeopardy without the state's 421-a tax break. But a proposed update to that law could actually cost the city billions of dollars in what advocates describe as a "wasteful giveway."
Under a new 421-a agreement up for approval by state lawmakers, the Real Estate Board of New York trade group that represents developers says it needs the program to put shovels in the ground for affordable and market rate rentals.
But an analysis from the Alliance for Tenant Power — a coalition of housing, community and legal service groups — said the new program would cost the city $2.4 billion a year in lost tax revenue.
That’s double the $1.2 billion the program cost the city in 2016, which only yielded about $100 million a year worth of affordable housing, the group said.