The city's real estate developers, through its lobbying arm the Real Estate Board of New York, is using the downturn to push for the reinstatement of the old 421-a law. From the early 1970s when it first went into effect until it was revamped last year, 421-a provided huge tax incentives to developers to create new residential housing. The new version of the law has much more stringent geographic restrictions requires the inclusion of on-site affordable housing. "The world has changed," said REBNY's Steven Spinola, "If we knew then what we know now, would we have made those changes?" Not everyone's buying it. "It's an outrageous and completely self-serving play by the real estate industry," said Brad Lander of the Pratt Center for Community Development. "I don't think that anyone thinks that what will save this city is more luxury condo development." The city hasn't weighed in yet, though it did give builders who made last year's foundation deadline some extra time to finish their projects. And Vito Lopez, the Council Member who championed last year's repeal, says he has "no plans" to revisit the 421-a legislation.
REBNY Hammerin' for Old Tax Breaks [NY Daily News]
Photo by Lawrence L
