Tax Incentives: UDAAP

UDAAP

Tax exemption for REHABILITATION OR NEW CONSTRUCTION of housing in UDAAP AREAS

ELIGIBLE PROJECTS

Rehabilitation or new construction of housing on formerly city-owned land, including properties that were transferred to a third party through Local Law 37, in an area which the City Council determines to be in need of urban renewal.

BENEFITS GRANTED

Upto a 20-year (10 years full + 10 years phase out) exemption from real estate taxes on the assessed value of the building. The exemption does not, however, affect taxes on land value.

PROCEDURAL REQUIREMENTS

The City Council must pass a resolution designating the project an Urban Development Action Area Project (UDAAP) and authorizing exemption. HPD usually requests the resolution. Tax Incentive Programs (TIP) then issues a Certificate of Eligibility and the Department of Finance implements the benefits.

HOW TO APPLY

Obtain additional information by calling (212) 863-5601. Submit completed application to: UDAAP Program, Tax Incentive Programs, HPD, 100 Gold Street, Room 8-C, New York, NY 10038. There is no application fee.