This spring, the city announced it had given hundreds of property owners one last chance to recoup the 421-a tax benefit by complying with provisions of a perk that aims to encourage the creation of affordable homes.
Now that the May 1 compliance deadline has passed, 730 of the 1,788 targeted properties lost the benefit, according to data provided by the city Department of Finance last month. Collectively, the properties lost about $22.38 million, according to the Department of Finance.
The property tax benefit was launched in the 1970s to spur residential construction. Over the years, it has been extended to co-ops, condos, two- to three-family homes and rental developments.
Although the city yanked 421-a from properties for a variety of concerns, advocates have focused their attentions on rental properties, since they must abide by rent stabilization rules while receiving 421-a.
Earlier this year, at least 367 developments with rental units had 421-a suspended for undisclosed reasons. The new city data shows 175 of these lots have had the benefit reinstated by fulfilling all of the 421-a requirements by May 1.