Tax Incentives: 421-a

421-a

Partial tax exemption for NEW MULTIPLE DWELLINGS

ELIGIBLE PROJECTS

New construction of MULTIPLE DWELLINGS on lots which were vacant, predominantly vacant or improved with a non-conforming use three years prior to the start of construction. Buildings in the EXCLUSION AREA are not eligible unless they receive governmental assistance, contain 20% affordable units, or the owner participates in the 421-a Affordable Housing Production Program.

EXCLUSION AREAS

Generally, buildings within these areas must meet additional affordable housing requirements.

BENEFITS GRANTED

Construction period exemption (up to 3 years) plus 10-year (2 years full + 8 years phase out), 15-year (11 years full + 4 years phase out), 20-year (12 years full + 8 years phase out), or 25-year (21 years full + 4 years phase out) post-construction exemption from the increase in real estate taxes resulting from the work.
The longer exemption periods apply in northern Manhattan, the other boroughs, other designated areas, and to projects that receive governmental assistance or contain 20% affordable units.
All market rate rental units become subject to rent stabilization for the duration of the benefits, with initial rents approved by the Tax Incentive Programs (TIP). Affordable rental units are rent stabilized for 35 years.

PROCEDURAL REQUIREMENTS

The developer applies to TIP and receives a Certificate of Eligibility. The Department of Finance implements the benefits. Benefits may be applied for once construction begins.

HOW TO APPLY

Obtain additional information and request an application by calling (212) 863-8540 or download the following forms, which are available in PDF format.

Submit completed application to: 421-a Program, Tax Incentive Programs, Room 8-C09, HPD, 100 Gold Street, New York, NY 10038. There is a $100 application fee.

Summary of office hours:
Application Submission/Certificate Pick-ups: Mondays through Fridays 9am-12pm and 1pm-5pm
Appointments: Tuesdays and Thursdays 9:00am-12:00pm and 1:00pm-4:00pm, must call for appointment
Clients can also call customer service at (212) 863-8540 or for help with the online application, please call at (212) 863-5760.

MORE INFO

421-a Legislation Overview and FAQ 
Map of Geographic Exclusion Area
Note:
All of Manhattan is within the GEA

421-a Geographic Exclusion Area (GEA) effective July 1, 2008 

NEW FEATURE: New 421-a Rent Calculator (Excel Spreadsheet)

NEW  Rental and Homeownership Affordability Calculators (Excel spreadsheet)
Please visit the following links on NYC Department of Finance webpage for additional information regarding which properties are receiving 421a and to look up a specific property or apartment to find information regarding its benefit start and end dates, current benefit year, and benefit amount.