Most city officials and builders agree affordable housing is a widespread issue in New York City. The average monthly rent is $2,629, and housing eats up 63.1 percent of workers’ wages, according to a recent study from the Global Cities Business Alliance. While Mayor Bill de Blasio’s Housing New York plan to incorporate 200,000 affordable units over the next decade was approved by the NYC City Council in late March, the tax abatement relieving the astronomical costs of building on pricey NYC land, 421-a, expired in January. A recent Real Estate Board of New York (REBNY) study of data from the New York City Department of Housing Preservation and Development (HPD) reveals that 421-a plays a critical role in the development of affordable housing units. “New York is a city of renters and a city that continues to grow,” said John H. Banks III, president of REBNY. “It is clear that without 421-a, much less affordable housing will be developed, particularly in those ...
- The analysis shows 98 percent of designated affordable housing projects used some form of property tax benefit in 2014, though not necessarily 421-a.
- Over 50 percent of affordable housing units used 421-a in 2014, specifically.
- In Manhattan, over 78 percent of affordable housing projects used 421-a between 2014 and 2015.
- Nearly 55 percent of the 68 affordable housing projects used 421-a in Brooklyn in 2014.