The 421b Program promotes new one- and two-family housing construction by making home ownership more affordable.

It provides a decreasing property tax exemption based on new or substantial (increasing the assessed value by at least 40%) construction, rebuilding, or conversion of one- and two-family homes.  The program is managed by the NYC Department of Housing Preservation and Development (HPD) and the Department of Finance.

Eligibility

The Section 421b exemption eligibility period expired on June 30, 2009.

Construction must have started on or before July 1, 2006 for a project to have been eligible. Private dwelling construction must have started on or after July 1, 2002 and have been completed by July 1, 2009.

You may still submit an application, but only for the eligibility period listed above.

Processing
HPD determines eligibility and approves the application.   Finance then administers the benefits.  Once approved, you will receive a Certificate of Eligibility from HPD.  This certificate and a 421b application must then be submitted to Finance.