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| title | chunk | source | category | tags | date_saved | instance |
|---|---|---|---|---|---|---|
| 421-a tax exemption | 5/5 | https://en.wikipedia.org/wiki/421-a_tax_exemption | reference | science, encyclopedia | 2026-05-05T16:00:34.957581+00:00 | kb-cron |
== Criticisms == Critics argue that the 421-a tax exemption program unfairly drains city tax revenue. The current tax breaks cost the city about $1.4 billion in lost tax revenue annually. The city government estimated that the new program signed into law will cost the city an extra $82 million a year in uncollected property taxes, compared to the program proposal made in 2015. An analysis by the IBO found that a 35-year tax exemption program would cost $8.4 billion over the next ten years, although developers claim that this figure assumes that qualifying projects would have been built without the exemption anyway. Critics claim that the new 421-a program will cost city taxpayers even more than the old plan. The IBO found that the new 421-a plan would cost add $120 million per year, or $1.2 billion over ten years, to the overall cost of the program. This is compared to the old program that would have cost $7.2 billion over ten years. The Association for Neighborhood Housing and Development, an interest group that advocated for non-profits and affordable housing groups, claimed that the city needed that extra money to make up for expected cuts in federal funding to the city over the next year, and that luxury development companies should have to pay full taxes on the property, not get a deduction. Meanwhile, Democratic State Senator Gustavo Rivera claimed that the rents would not be low enough for residents in his Bronx state senate district to take advantage of the program. Senator Brad Hoylman stated that the dollars devoted to the 421-a program should instead go directly to creating affordable housing. Real estate trade groups, in response, claim that the exemption program makes it feasible to build residential housing in the first place. John Banks, president of the Real Estate Board of New York, claimed that the high construction costs, expensive land, and tax increases would make construction unfeasible without the tax break. One developer also claimed that they would be more likely to construct condos instead of rentals without the tax exemption because the differential would make condos comparably more profitable. The developer claimed that affordable rental units would take a hit without the 421-a program.
== See also == New York City housing crisis, a shortage of affordable housing in New York City
== References ==
== External links == Map of the Geographic Exclusion Area in New York City