MAYOR GIULIANI CONSIDERS LEGISLATION TO EXTEND TAX EXEMPTION PROGRAM FOR NEWLY CONSTRUCTED MULTIPLE DWELLINGS
The first bill before me is Introductory Number 948, introduced by Council Members Spigner, Pagan, Ruiz, Lasher and McCaffrey. The bill amends the Administrative Code of the City of New York, in relation to extending the term of the geographic exclusion area under the 421-a Tax Exemption Program which is due to expire on July 1, 1997.
This bill will extend for an additional two year period, until 1999, the provisions which allow benefits to newly constructed multiple dwellings located in the Manhattan Exclusion Zone. Sites receive the benefits automatically in all parts of the City except within the Manhattan Exclusion Zone which is located south of 96th Street and north of 14th Street on the East Side and north of Houston Street on the West Side, excluding a portion of the West Side between 42nd and 14th Streets.
To receive 421-a exemption benefits in the Manhattan Exclusion Zone, the developer of a project must finance the construction of one affordable unit for every five units seeking tax exemption.
The Exclusion Zone was created in 1985 and extended in 1989 and again in 1994. If it is allowed to expire, 421-a exemption benefits will become available "as-of-right" in the Exclusion Area and developers will no longer be required to finance the development of affordable housing in order to obtain the tax benefits.
The 421-a program provides an incentive to developers to create affordable housing without the direct expenditure of government subsidies and with minimum government intervention. Not only has the program created over 1,300 low-income housing units, but it has created construction jobs as well as substantial sales and income tax revenues for the City of New York. Given the need for affordable housing and in order to ensure that market rate housing continues to be produced, it is my intent to sign this bill.
I will first turn to the bill's sponsors and then to any other elected official wishing to be heard.
There being no one else to be heard, and for the reasons stated previously, I will now sign this bill.
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