FOR IMMEDIATE RELEASE
Friday, May 12, 2000
| Contact: | Sunny Mindel/Edward Skyler (212) 788-2958 |
The first bill before me, Introductory Number 508-A, sponsored by Council Member Spigner at my request, amends the Administrative Code of the City of New York to expand site eligibility for the 421-a tax incentive program.
The New York State Real Property Tax Law authorizes the City to provide tax exemptions for newly constructed multiple dwellings. Commonly known as the 421-a program, this exemption has spurred the construction of more than 130,000 new housing units since the program's inception in the early 1970s.
Currently, in order to be eligible to receive 421-a benefits, the site on which a new multiple dwelling is constructed must be either vacant, predominantly vacant, improved with a non-conforming use, or underutilized. This legislation permits more sites to be eligible for 421-a benefits by changing the underutilization test, expanding the floor area ratio and assessed valuation standards. By making the 421-a program less restrictive, more property and additional areas of the City will be able to take advantage of this essential program resulting in the construction of more housing units.
The 421-a program is an important part of my Administration's on-going effort to encourage new affordable housing construction in the City. Given the high cost of development and the limited supply of housing in the City, we must use every tool at our disposal to encourage private financing for new residential projects and maximize the number of housing sites eligible for benefits. In addition to affordable housing units, the new construction spurred by this program results in broader economic activity and additional job creation.
For the reasons previously stated, I will now sign the bill.
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