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NYC Department of Housing Preservation & Development
Developers

Tax Incentives
421-a

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.

Mayor Bloomberg Signs Legislation Reforming 421-A Property Tax Exemption Program  

421-a Legislation Overview and FAQ 

NEW FEATURE: New 421-a Rent Calculator (Excel Spreadsheet) Click here for the 421-a Online Application 

NEW GEA Rental and Homeownership Affordability Calculators(Excel spreadsheet)

Click here for the 421-a Online Application FAQ

For questions or inquiries about the 421-a Online Application, please contact 212-863-5760.

421-a

Partial tax exemption for NEW MULTIPLE DWELLINGS

ELIGIBLE PROJECTS

New construction of MULTIPLE DWELLINGS on lots which were vacant, predominantly vacant or improved with a non-conforming use three years prior to the start of construction. Buildings in the EXCLUSION AREA are not eligible unless they receive governmental assistance, contain 20% affordable units, or the owner participates in the 421-a Affordable Housing Production Program.

EXCLUSION AREAS

Generally, buildings within these areas must meet additional affordable housing requirements.

BENEFITS GRANTED

Construction period exemption (up to 3 years) plus 10-year (2 years full + 8 years phase out), 15-year (11 years full + 4 years phase out), 20-year (12 years full + 8 years phase out), or 25-year (21 years full + 4 years phase out) post-construction exemption from the increase in real estate taxes resulting from the work.

The longer exemption periods apply in northern Manhattan, the other boroughs, other designated areas, and to projects that receive governmental assistance or contain 20% affordable units.

All rental units become subject to rent stabilization for the duration of the benefits, with initial rents set by the Tax Incentive Programs (TIP).

PROCEDURAL REQUIREMENTS

The developer applies to TIP and receives a Certificate of Eligibility. The Department of Finance implements the benefits. Benefits may be applied for once construction begins.

NOTICES

NOTICE OF ADOPTION OF RULES GOVERNING TAX EXEMPTION UNDER §421-a OF THE REAL PROPERTY TAX LAW OF THE STATE OF NEW YORK

HOW TO APPLY

Obtain additional information and request an application by calling (212) 863-8540 or download the following forms, which are available in .PDF format. To download and print them, you will need the latest copy of the Adobe Acrobat Reader.  This program can be downloaded for free from this link:"Acrobat and the Web."

Submit completed application to: 421-a Program, Tax Incentive Programs, Room 8-C09, HPD, 100 Gold Street, New York, NY 10038. There isa $100 application fee.

Summary of office hours:
Walk-in hours: Mondays and Wednesdays 10:00am-12:00pm and 1:00pm-3:00pm
Appointments: Tuesdays and Thursdays 9:00am-12:00pm and 1:00pm-4:00pm
No walk-ins or appointments on Fridays. Customers may still call customer service at (212) 863-8540 or for help on the online application, please call at (212) 863-5760. 

Please visit the following links on NYC Department of Finance webpage for additional information regarding which properties are receiving 421a and to look up a specific property or apartment to find information regarding its benefit start and end dates, current benefit year, and benefit amount.



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