The Real Deal:
A budget proposal from the New York State Senate would greatly increase the number of tax exempt condominium projects in the outer boroughs, confirming the fears of Mayor Bill de Blasio and other city officials that such developments could creep back into a renewed 421a developer tax break.
In the Senate Republicans’ latest version of the bill, condo projects outside Manhattan with as many as 80 units could qualify for 421a tax exemptions, up from 35 units in Gov. Andrew Cuomo’s proposal released in January. A cap on the average tax assessment value for benefitting condo units is also raised in the new proposal from $65,000 to $85,000, a change that was first reported by Politico.
Since the 421a program’s expiration in January of 2016, developers have filed offering plans for 15 new outerborough projects consisting of between 35 and 80 condo units, a TRD analysis of data from the New York State Attorney General shows. If 421a became available to developers of this section of the market, there could be many more of these condo projects on the horizon.
Two key Senators in the 421a negotiations have previously expressed an interest in increasing outer-borough condo benefits, prior to Cuomo releasing his own plan. Republican-caucusing Democrat Simcha Felder and Republican Marty Golden, both of Brooklyn, told reporters in December they were looking to expand the tax break for more property owners, but haven’t provided further details.
Calls and emails directed to Golden and Felder were not immediately returned on Wednesday.