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NYC Department of Housing Preservation & Development
Developers

Tax Incentives
420-c

Please note: The following tax incentive program is for developers and future or current property owners. If you are looking for an affordable apartment, please visit our Affordable Housing Hotline. Additionally, HPD's partners are required to advertise available affordable apartments in daily and local newspapers.

            > 420-c Legislation Overview and FAQ 

420-c

Complete or partial tax exemption for low-income housing developed with tax credits

ELIGIBLE PROJECTS

Projects which are:

  1. Owned or leased for at least 30 years by a corporation, LP, or LLC, of which at least 50% of the controlling interest is held by a tax exempt 501(c)(3) or (4) charitable organization whose purposes include low-income housing, or a wholly-owned subsidiary of such charitable organization, and;

  2. Subject to an HPD approved regulatory agreement which requires use as low-income housing, and;

  3. Currently or formerly financed with federal low-income housing tax credits.   

BENEFITS GRANTED

Complete or partial exemption from real estate taxes for the term of the regulatory agreement up to a maximum of 60 years.  HPD may impose a payment in lieu of taxes (PILOT) as a condition for the exemption.  There is no exemption for commercial space.

PROCEDURAL REQUIREMENTS

The developer applies to Tax Incentive Programs (TIP) and receives a Certificate of Eligibility.  The Department of Finance implements the benefits.
NOTICESNotice of Adoption of Rules Governing Tax Exemption under §§420-c, 421-a, 421-b, 488-a and 489 of the Real Property Tax Law

HOW TO APPLY

Obtain additional information and request an application by calling (212) 863-6603.

Submit completed forms to: 420-c Program, Tax Incentive Programs, HPD, 100 Gold Street, Room 8-D07, New York, NY 10038.

420-c Application Forms

420-c Declaratory Ruling Request Form

Application Fee: $100

Processing Fee (Payable before file is completed):
For SRO (Class B units): $60 per unit
For All Other (Class A units): $80 per unit

Declaratory Ruling Fee: $250

    


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