{"id":455261,"date":"2022-05-31T01:22:37","date_gmt":"2022-05-30T22:22:37","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/421as-end-means-its-time-for-real-property-tax-reform-in-nyc\/"},"modified":"2022-05-31T01:22:37","modified_gmt":"2022-05-30T22:22:37","slug":"421as-end-means-its-time-for-real-property-tax-reform-in-nyc","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/421as-end-means-its-time-for-real-property-tax-reform-in-nyc\/","title":{"rendered":"#421a\u2019s end means it&#8217;s time for real property-tax reform in NYC"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2193092e029\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2193092e029\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/421as-end-means-its-time-for-real-property-tax-reform-in-nyc\/#%E2%80%9C421as_end_means_its_time_for_real_property-tax_reform_in_NYC%E2%80%9D\" >&#8220;421a\u2019s end means it&#8217;s time for real property-tax reform in NYC&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9C421as_end_means_its_time_for_real_property-tax_reform_in_NYC%E2%80%9D\"><\/span>&#8220;421a\u2019s end means it&#8217;s time for real property-tax reform in NYC&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>For those who want to see New York City revive and thrive, the impending demise of the 421a housing-construction abatement, known by its section of state law, may seem like a blow. The annual $1.8 billion property-tax break, the city\u2019s most lucrative, has enabled the construction of thousands of income-restricted \u201caffordable\u201d units. The majority of the city\u2019s new residential development since 2013 (and 28% of affordable units) has made use of it.<\/p>\n<p>But after 50 years, the subsidy looks to be at the end of the line in Albany. It\u2019s likely to lapse as the result of progressive arguments that 421a is just one more tax break for the rich \u2014 and that its affordable units don\u2019t reach the very poorest\u2019s income levels.<\/p>\n<p>But this is one case where those across the political spectrum should agree \u2014 and move forward to fix the underlying problem on which 421a has at best placed a Band-Aid: the city\u2019s crazy-quilt property-tax system.<\/p>\n<p>City Comptroller Brad v, who would politicize the city\u2019s pension investments and sees rent regulation as inviolate, is right this time: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/comptroller.nyc.gov\/reports\/a-better-way-than-421a\/\">He says the city\u2019s<\/a> \u201cproperty tax system is notoriously opaque, unfair, and regressive. For the past four decades, rather than dealing with its structural flaws, New York State has layered on a patchwork of exemptions and abatements to lower tax rates for various owners.\u201d<\/p>\n<p>At the heart of the system\u2019s complexity and capriciousness is the fact that city property-tax bills are often detached from a property\u2019s actual market value. That\u2019s what motivated 421a \u2014 but has also made it, as per Lander, just one more example of how doing business in New York requires one to be a well-connected firm with access to top legal talent. It\u2019s the same reason Walgreens had to buy Duane Reade to get a foothold in the city: Real-estate development is a specialist\u2019s skill here rather than the \u201cas of right\u201d option available to the willing entrepreneur in, say, Houston.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/albany-capitol-3.jpg?w=1024\" alt=\"Albany lawmakers are set to let 421a expire in June.\" class=\"wp-image-22466493\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/albany-capitol-3.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/albany-capitol-3.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/albany-capitol-3.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Albany lawmakers are set to let 421a expire in June.<\/figcaption><figcaption><span class=\"credit\">Hans Pennink<\/span><\/figcaption><\/figure>\n<p>The underlying problem is so well-known as to be old <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> \u2014 but still worth reviewing. As <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/furmancenter.org\/research\/publication\/distribution-of-the-burden-of-new-york-citys-property-tax\">NYU\u2019s Furman Center has found,<\/a> rental apartment buildings have a higher \u201ceffective tax rate\u201d than one-to-three-family homes, making it no surprise that nonregulated rents keep rising. And because condos and co-ops are taxed as if they are single-family homes, a Park Avenue condo can pay far less tax than its value would suggest.<\/p>\n<p>Commercial real estate has long been a cash cow \u2014 a situation that post-COVID work patterns may no longer permit. And the disproportionate burden on rental properties means developers have a financial incentive to build only for the luxury market. Those who would build \u201caffordable\u201d units need a range of subsidies \u2014 including 421a.<\/p>\n<p>The system\u2019s vagaries have not escaped elected officials, including former Mayor Bill de Blasio, who convened a commission to come up with an alternative. The good news is that the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www1.nyc.gov\/office-of-the-mayor\/news\/878-21\/nyc-advisory-commission-property-tax-reform-releases-final-report#:~:text=Mayor%20Bill%20de%20Blasio%20and,to%20fund%20essential%20City%20services.\">Advisory Commission on Property Tax Reform<\/a> did just that in a December report. Among its key proposals: putting all small residential property \u2014 one-to-three-family homes, four-to-10-unit rental buildings, condos, co-ops \u2014 in the same tax class and \u201censuring that rules are <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lied uniformly regardless of property type.\u201d <\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/brad-lander-1.jpg?w=1024\" alt=\"Progressives like City Comptroller Brad Lander have argued that 421a is a tax break for the rich.\" class=\"wp-image-22466500\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/brad-lander-1.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/brad-lander-1.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/brad-lander-1.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Progressives like City Comptroller Brad Lander have argued that 421a is a tax break for the rich.<\/figcaption><figcaption><span class=\"credit\">Photo by Noam Galai\/Getty Images for One Fair Wage<\/span><\/figcaption><\/figure>\n<p>The way to do that would involve \u201csales-based market value.\u201d In other words, don\u2019t tax Upper East Side co-ops as if they\u2019re rent-controlled apartments.<\/p>\n<p>To be sure, reform would create winners and losers, if viewed narrowly in terms of tax liability. The <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ibo.nyc.ny.us\/iboreports\/addressing-the-disparities-winners-losers-in-two-property-tax-reform-scenarios-april-2018.html\">city\u2019s Independent Budget Office found<\/a> that if all residential properties in the city paid property taxes based on market value, nearly 500,000 would get a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>n tax cut of $1,100. Homes on Staten Island would almost all get a tax break \u2014 but 98% of those in Park Slope would get a whopping median tax increase of $11,000. Of course, that\u2019s the result of gentrification \u2014 and the neighborhood liberals should be willing to pay their \u201cfair share.\u201d<\/p>\n<p>The demise of 421a sets up a \u201cPut up or shut up\u201d moment for progressives in Albany, which must approve a new property-tax regime for the city. We will find out if they were only interested in punishing real-estate developers who\u2019d gotten the tax break \u2014 or whether they are serious about <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> property-tax reform, as Lander urges.<\/p>\n<p>A full-throated New York City comeback will require a great many factors to fall in place, from getting the homeless off city streets to reducing crime across the board. But making it far easier to build housing \u2014 and not need a complex tax subsidy to do so \u2014 is key. Albany must act.<\/p>\n<p><em>Howard Husock is a senior fellow at the American Enterprise Institute.<\/em>\n                        <\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/05\/30\/421as-end-means-its-time-for-real-property-tax-reform-in-nyc\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;421a\u2019s end means it&#8217;s time for real property-tax reform in NYC&#8221; For those who want to see New York City revive and thrive, the impending demise of the 421a housing-construction abatement, known by its section of state law, may seem like a blow. The annual $1.8 billion property-tax break, the city\u2019s most lucrative, has enabled&#8230;<\/p>\n","protected":false},"author":1,"featured_media":455262,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/affordable-housing-1.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[129747,81958,71386,103384,72239,4953,70431],"class_list":["post-455261","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-5-30-22","tag-affordable-housing","tag-albany","tag-brad-lander","tag-development","tag-new-york-city","tag-property-taxes"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/455261","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=455261"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/455261\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/455262"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=455261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=455261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=455261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}