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August 25, 2007
New Laws for Housing Tax Break
The New York Times
The Times is very excited that Spitzer signed the 421-a revision. So excited, in fact, that they forgot to add the part about the Ratner Clause, a special little carve-out that makes the "more stringent affordability standards" LESS STRINGENT FOR RATNER.
Gov. Eliot Spitzer signed into law yesterday three bills to revamp a popular tax break for developers and encourage the construction of thousands of apartments for low-income New York City residents.The laws are expected to expand the number of neighborhoods where developers are required to include apartments for residents of limited means in order to receive tax breaks. Advocates for lower-cost housing have long said the laws would mean more housing for low-income residents and fewer incentives for developers to build luxury high-rises.
“This legislation will allow New York City to target its limited tax abatement resources to more effectively promote the construction of affordable housing in the neighborhoods that need it most,” the governor said. The tax program that is being revamped, known as 421-a, was started in the 1970s to spur housing development of any kind. Under it, developers received a 10-to-25-year exemption from increases in property taxes resulting from their work. But government officials and advocates for affordable housing say that given the change in New York’s real estate market since the program’s inception, the tax breaks are no longer needed in Midtown and other thriving parts of the city.
Under the new laws, developers will be required to meet more stringent affordability standards, give priority to neighborhood residents for lower-cost units, and ensure that units remain affordable for at least 35 years.
Meanwhile, the existing affordable housing stock in the neighborhood is quickly disappearing. This in from our neighbors on Bergen:
Block party to support the tenants in 533 Bergen Street (Carleton & 6th Avenue) this Sunday, Aug 26 12pm-6pm. There will also be a press conference at 12:30pm.The residents of this building are rent stabilized tenants who have lived in the community for decades. Their new landlords, Dan Bailey and Felicity Loughrey, are trying to evict four families from the building so that they can create one huge apartment and live in luxury. Join us in supporting the Bergen Street tenants' fight for survival and in telling Bailey and Loughrey that good neighbors don't evict neighbors.
DJs! Art! Food! Games! Balloons! Sprinklers! Support Your Neighbors!! Save Your Hood!!
Posted by amy at August 25, 2007 10:57 AM