Effective December 28, 2007, the 421-a Affordable Housing Program will
not enter into new written agreements generating 421-a negotiable
Existing certificates do not expire but will be subject
to some restrictions. For more information, please consult the 421-a
Legislation Overview and FAQ.
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.
|421-a AFFORDABLE HOUSING PROGRAM
||Market-rate projects which are not eligible for 421-a because they are located inthe EXCLUSION AREA (generally between 14th and 96th Streets in Manhattan), but otherwise meet the requirements of 421-a, can qualify for a 10 or 20-year partial tax exemption by participating in the 421-a Affordable Housing Program.
The developer of a project which receives benefits must finance or perform the construction or rehabilitation of on-site or off-site affordable units. Generally, one affordable unit must be financed or constructed for every five units in the project receiving benefits.
||Construction period exemption (up to 3 years) plus 10-year (2 years full + 8 years phase out) post construction exemption from the increase in real estate taxes resulting from the work for projects that purchase NEGOTIABLE CERTIFICATES; or 20-year (12 years full + 8 years phase out) for projects with on-site affordable units or constructed with substantial government assistance.
All rental units in the project receiving benefits become subject to rent stabilization for the duration of the benefits.
||Theaffordable housing developer enters into an agreement with Tax Incentive Programs (TIP) and receives NEGOTIABLE CERTIFICATES, which allow exemption for market-rate units in the EXCLUSION AREA. The affordable housing developer then sells the NEGOTIABLE CERTIFICATES to the developer of a project in the EXCLUSION AREA, who submits them to TIP and receives a Certificate of Eligibility for the EXCLUSION AREA project. The Department of Finance then implements the benefits.
The developer of on-site affordable units enters into an agreement with TIP for certification that the project contains 20% low-and moderate-income units.
|HOW TO APPLY
Obtain additional information and an application by calling (212) 863-6196.
Submit completed applications to: 421-a Affordable Housing Program, Tax Incentive Programs, HPD, 100 Gold Street, Room 9P-17, New York, NY 10038. There is a $100 application fee per affordable housing unit developed.