Overview

Costing over $1 billion a year, the 421a Real Estate Developer Tax Exemption program is the biggest tax giveaway no one have ever heard of. In spite of the enormous price tag, the program creates only a negligible affordable housing benefit, so it’s not surprising that the real estate lobby wants to keep it out of the public view.

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 in 2016, we were a key source of original research and analysis to give good housing and fiscal policy a fighting chance. Despite these efforts, however, the power of the real estate industry unfortunately won out, and the program was renewed with even less public benefit for the price tag.  

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.

Recent Blogs and Media

Blog
June 14, 2017
Yesterday’s The Real Deal article reported that the City is considering limitations on the how the 421-a developer’s tax break and the inclusionary housing program commingle. Currently, residential developers who receive the overly generous 421-a tax break in very high-density (R10) sites count can transfer air rights to other very high density developments nearby and also receive extra space for every square foot of affordable housing built.

Related Resources

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...
An analysis of the impacts -- and inefficiencies -- of tax exemption 421a in increasing affordable housing
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...
An analysis of affordable housing production in 2015/16 based on Albany's 421a tax break decision
A comparative analysis of the Albany proposals for rent law reform & 421a developer's tax break legislation
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...
A breakdown of the problems with the 421a Tax Break for housing developers – and recommended solutions.
An analysis of the 421a Developer’s Tax Break including a community-by-community analysis of all the properties that received this tax break in 2013.
A first-ever community-by-community look to determine where the 421a tax breaks have been awarded.

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