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August 26, 2007

This is Reform?

Develop Don't Destroy Brooklyn

Reform-minded Governor Eliot Spitzer had that reform slip his mind this week when he signed the 421-a property tax "reform" bill with a special provision giving a $200 million tax break exclusively for politically-connected, billionaire developer Bruce Ratner. That's right, under the new bill Bruce Ratner is the only developer who can get a 15-year tax break for constructing buildings comprised entirely of unaffordable units; that's right, a tax break not to build affordable housing. This means that if "Atlantic Yards" is ever built there would likely be 4 entire buildings of luxury condos paying no taxes for 15 years. That is a loss of $200 million as estimated by New York City.

Who gains? Bruce Ratner can sell those units at a higher price by passing on those tax savings to the new luxury condo owners. The Ratner Clause also allows Bruce Ratner to segregate residents of the "affordable" units from residents of his unaffordable units. Assemblyman Hakeem Jeffries of the 57th District has called this "economic segregation."

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Posted by amy at August 26, 2007 10:31 AM