Cuomo, REBNY Already Arguing Over The New 421-a

Andrew Cuomo
New York Gov. Andrew Cuomo

Well, that burst of hope was short-lived.

Only one day after agreeing to revive the 421-a abatement, Gov. Andrew Cuomo’s office and REBNY began squabbling over the deal’s meaning.

The quarrel started when REBNY said the new 421-a’s exemption would apply to every eligible project in the city, as opposed to the specific areas reported earlier: 300 rental units or more south of 96th Street in Manhattan, and Queens and Brooklyn’s Community Boards 1 and 2 within one mile of the nearest waterfront bulkhead.

The group also said the exemption would apply to those who didn’t meet the wage requirements, and that the longer affordability period would be a city benefit in exchange for the exemption.

An official in Cuomo’s office, however, told Crain’s that those who didn’t meet the requirements would receive a tax break under a different timeline. If the benefit were applied citywide and without the wage requirement, the official continued, developers would get an additional decade of tax exemption at the cost of the taxpayers.

The state legislature, which still needs to approve the law, is expected to take up the issue in January. [Crain’s]

UPDATE: REBNY SVP Jamie McShane admitted there was a “misunderstanding," and the organization agreed to having the 35-year exemption only apply to projects participating in wage and benefit agreement.

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Related Topics: 421-a , Andrew Cuomo , REBNY
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