Overview

Overview

Costing over $1 billion a year, the 421a Real Estate Developer Tax Exemption program is the biggest tax giveaway no one has ever heard of. 421-a is the City’s single largest expenditure on housing, costing more than tenant vouchers, NYCHA, and subsidies for affordable housing development. In spite of the enormous price tag, the program creates mostly middle-income & luxury housing in gentrifying or gentrified neighborhoods. We need to stop funding luxury development and fund deeply affordable housing.

The Project

ANHD has led our member groups to advocate against the 421a Real Estate Developer Tax Exemption program, as well as written extensively on this tax exemption and the lack of true community benefit it offers to residents. When the program came up for renewal in Albany last year (2022), we were a key source of original research and analysis to give good housing and fiscal policy a fighting chance. Thanks to our advocacy, the legislature chose not to renew 421a. 

ANHD continues to be a resource for our member groups who want to fight for public accountability and a real public benefit in this tax exemption.

News

Recent Blogs and Media

News Clip
May 19, 2022
Debate Swirls Over Property Tax Exemption For Real Estate Developers
Read More »
Barika Williams
Blog
March 28, 2022
421-a is Not an Affordable Housing Program
Fund Truly Affordable Housing, Not Luxury Development
The 421-a tax exemption, which has subsidized luxury housing development for decades, is currently set to sunset this year. Governor Hochul’s proposed replacement (485-w) proposal is a sugar-coated version of 421-a that is ultimately still a massive giveaway to luxury developers - not an affordable housing program. As we enter the final week of negotiations around the New York State budget, ANHD explores why we need to reject 485-w, let 421-a expire, and instead focus funding and policy on true affordable housing programs.
Read More »
Will Depoo
News Clip
August 3, 2021
Real Estate Developers Already Worrying About 421a Expiring Next Year
Read More »
Emily Goldstein
View More
Resources

Related Resources

Fund Truly Affordable Housing, Not Luxury Development
The 421-a tax exemption, which has subsidized luxury housing development for decades, is currently set to sunset this year. Governor Hochul’s proposed replacement (485-w) proposal is a sugar-coated...
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New York’s Pandemic Rent Crisis
A report showing that New York’s severe rent debt and eviction risk require immediate and long-term solutions.
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Understanding REBNY's New 421-a Tax Exemption Proposal
What does it do? What does it cost? In January 2017, a revised 421-a Tax Exemption, rebranded and given the title “The Affordable New York Housing Program,” was introduced and inserted into the...
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What Happened To Housing Development When 421a Was Suspended?
An analysis of the impacts -- and inefficiencies -- of tax exemption 421a in increasing affordable housing
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Just What Does the Albany 421a Plan Say?
On June 26, 2015 after a long campaign by the tenant and affordable housing movement both he Rent Laws and the 421a Developer Tax Break were renewed in Albany. The results, on both fronts, were not...
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421A Developer’s Tax Break: June 2015 Albany Reforms
An analysis of affordable housing production in 2015/16 based on Albany's 421a tax break decision
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Rent Laws & 421a Developer’s Tax Break Legislation: A Side-by-Side Comparison
A comparative analysis of the Albany proposals for rent law reform & 421a developer's tax break legislation
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ANHD’s District Maps – where the 421a tax breaks are
A first-ever community-by-community look to determine where the 421a tax breaks have been awarded.
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421a Tax Break: Fix It or End It
With 421a and Rent Laws set to expire in June 2015, the City and the State are at critical moment. Will we put the public benefit of affordable housing before the private profit interests of real...
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