Tax Incentives 421a Rules

Rule Amendment Regarding Prevailing Wages for Building Service Workers

HPD’s proposed rule amendments would reflect the New York City Comptroller’s enforcement authority under RPTL Section 421-a (17) (the Extended Benefits Program).

Comments Due: January 23, 2018 


Rule Amendments Regarding  RPTL 421-a Requirements for Prevailing Wages for Building Service Workers and Minimum Average Wage Requirements for Construction Workers

 
HPD’s  rule amendments implement changes to the prevailing wage requirements for building service employees in buildings receiving tax benefits pursuant to RPTL Section 421-a enacted by Chapter 20 of the Laws of 2015 and Chapter 59 of the Laws of 2017.  They also incorporate the City Comptroller’s enforcement authority under 421-a(16)  for the minimum average wage requirements for construction workers in certain projects.

Effective Date: October 26, 2017 


Rule Amendments Regarding  Affordable New York Housing Program RPTL 421-a(16) Tax Exemption Benefits


HPD’s  rule amendments implement the Affordable New York Housing Program adopted by the State Legislature in Chapter 20 of the Laws of 2015 and amended by Chapter 59 of the Laws of 2017.  The Affordable New York Housing Program provides a tax exemption similar to the prior Real Property Tax Law Section 421-a exemption, but for buildings that commence construction after December 31, 2015.

Effective Date: October 26, 2017


Rule Amendments Regarding Inclusionary Housing and Real Property Tax Law Section 421-a Affordable Housing Units

HPD’s adopted rule amendments to Chapter 41 of Title 28 of the Rules of the City of New York (the "Inclusionary Housing Rules") would limit the zoning bonus generated by 421-a affordable units to usage on the same zoning lot as the building containing the 421-a affordable units or  buildings on a development site on which the affordable housing units are located where the development site includes two or more zoning lots that were reviewed and approved as a single unit pursuant to the New York City Zoning Resolution. 

Effective Date: October 13, 2017


Notice of Adoption of Rule Amendments Regarding Rents for RPTL 421-a Affordable Units in Multiple Dwellings Subject to HAP Contracts
 
HPD’s rule amendment would, under very limited circumstances, allow new multiple dwellings that have a project-based Section 8 contract for subsidies from the United States Department of Housing and Urban Development (“HUD”) that would cover the difference between the tenant’s payment (30% of such tenant’s income) and HUD Contract Rents to register 120% of HUD Contract Rents as the State Division of Housing and Community Renewal (“SDHCR”) legal regulated rent, which would be above the current cap of 30% of the applicable AMI. 
 
Effective Date: May 14, 2017