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August 11, 2007

A closer look at the 421-a revision; can you figure it out?

421a1.JPG Atlantic Yards Report gets out the highlighter and attacks the 421-a tax exemption.

The New York Times on Wednesday reported, the city's party line:
As for Atlantic Yards, city officials said the new agreement represents a fair compromise. To receive the maximum tax break, 20 percent of the units in any building will have to meet the new affordability guidelines, which are more stringent than those that originally applied. And the lower-priced units will have to be built at the same time as the market-rate units, to insure that they are not put off until the end of construction or never completed.

This fails to explain that Forest City Ratner would still be eligible for a special tax break. It sets up a false comparison. Yes, the new law is more stringent than that "originally applied," but it would be more stringent for everyone, so that's not the point. The point is that the affordability guidelines would be different for Atlantic Yards. That's why it's still a "carve-out."

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Posted by amy at August 11, 2007 10:32 AM