Directory of New York City Affordable Housing Programs

Program (?) 421-a Tax Incentive Program
Abbreviation 421-a
Program Description

The 421-a Tax Incentive program is a partial real estate tax exemption for the new construction of multi-family rental housing. Buildings in a defined “Geographic Exclusion Area” are not eligible for the program unless they receive governmental assistance and/or agree to keep 20 percent of the units affordable to low-income households. The tax benefit is a construction period exemption, plus a post-construction exemption of varying lengths from the increase in real estate taxes resulting from the work.  The 421-a benefits vary depending on factors such as location, method of construction and if requirements for affordable housing have been met. The State Legislature approved an extension of the 421-a program in June 2015, but the program has been a state of suspension as of January 2016.

Benefit Classification (?)  
Supply or Demand Supply
One-Time or Ongoing Ongoing
Benefit Type (?) Property Tax Incentive
Government Agency (?) NYC Dept of Housing Preservation and Development
Program Information (?)  
Scale Very Large Scale (over 10,000 units produced)
Timeframe 1971-2008, 2011-Present
Developer/Owners (?) For-Profit, Non-Profit
Property Information (?)  
Property Occupancy Vacant
Property Type Land
Building Type Multi-family
Construction Type New Construction
Occupant Tenure (?) Rental
Occupant Income Restrictions (?) Very Low-Income, Moderate-Income
Other Targeting Information (?)

Limited to specific geographic areas

More Information NYC HPD

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