New York State Real Property Tax Law (“RPTL”) § 485-x (“Act”) adopted the Affordable Neighborhoods for New Yorkers Tax Incentive program (“ANNY Program Benefits”) in order to provide a real property tax exemption for the construction of new Multiple Dwellings and Eligible Conversions, except for hotels. These ANNY Program Benefits are available to Multiple Dwellings or Homeownership Projects that contain six or more dwelling units, commenced after June 15, 2022, and on or before June 15, 2034, and are completed on or before June 15, 2038.
More information about ANNY Program Benefits will be published by HPD on this webpage.
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485-x
Affordable Neighborhoods for New Yorkers, a new tax exemption program also known as 485-x, was created to support the creation of affordable housing in New York City.
“Our City faces the worst housing shortage in half a century so we’re laser focused on creating more affordable apartments, especially at rents that working New Yorkers, seniors and anyone who’s struggled, can afford. This City is for all of us and Affordable Neighborhoods for New Yorkers will let us build housing so that it works for everyone.”
--Housing Preservation and Development Commissioner Adolfo Carrion Jr.
Real Property Tax Law Section 485-x was adopted on April 20, 2024, and creates Affordable Neighborhoods for New Yorkers Tax Incentive Benefits (“ANNY Program Benefits”). On December 16, 2024, HPD adopted Chapter 63 of Title 28 of the Rules of the City of New York to implement the Affordable Neighborhoods for New Yorkers Tax Incentive program. Capitalized terms not otherwise defined herein shall have the same meaning as set forth in the state law and HPD rules. You can read the state law and the HPD rules.
Eligible Projects
ANNY Program Benefits are available to Eligible Multiple Dwellings that commence construction after June 15, 2022, and on or before June 15, 2034, and that complete on or before June 15, 2038.
The requirements for ANNY Program Benefits are determined by building size, location and tenure.
Permanent Affordability
All Affordable Housing Units will be permanently affordable and all Restricted Units, which includes Affordable Housing Units and dwelling units subject to Rent Stabilization in accordance with Option C, will be permanently rent stabilized.
All Restricted Units occupied by tenants whose eligibility was approved by HPD also remain subject to Rent Stabilization until such tenants vacate if such tenants occupied such unit before the Application was denied or such Application was either never filed or withdrawn.
Application Registration
Applicants must submit a registration notice in order to apply for benefits. The registration notice for projects with a Commencement Date on or after April 20, 2024 is available in the links below, and must be filed no later than six months after a project’s Commencement Date if such Commencement Date is on or after April 20, 2024. For projects that commenced before April 20, 2024, the deadline to file such registration notice was December 14, 2024. HPD may impose a penalty not to exceed 100% of the Application filing fee for failure to timely file the registration notice.
Access the 485-x Registration Form for projects with a Commencement Date on or after April 20, 2024. This Registration Notice will be open and accessible through the life of the program and must be completed no later than six months after such Commencement Date.
Eligible Rental Projects
Below is a summary of the eligibility options available for ANNY Program Benefits. The option must be selected in the initial submission of any required Workbook and Application. Please refer to the Real Property Tax Law Section 485-x and Chapter 63 to Title 28 of the Rules of the City of New York for any additional requirements.
Option A: Large Rental Projects and Very Large Rental Projects
Large Rental Projects with 100 or more residential dwelling units that meet the eligibility requirements receive a 35-year benefit and up to three years of Construction Period benefits.
Very Large Rental Projects with 150 or more residential dwelling units located in Zones A and B that meet the eligibility requirements receive a 40-year benefit , up to five years of Construction Period benefits in Zone A and up to three years of Construction Period benefits in Zone B.
"Zone A" includes any tax lot now existing or hereafter created which is located entirely south of 96th street in the borough of Manhattan or in any of the following neighborhood tabulation areas as most recently defined by the Department of New York City Planning: Brooklyn 0101, Brooklyn 0102, Brooklyn 0103, Brooklyn 0104, and Queens 0201.
"Zone B" includes any tax lot now existing or hereafter created which is located entirely in any of the following neighborhood tabulation areas as most recently defined by the Department of New York City Planning: Brooklyn 0201, Brooklyn 0202, Brooklyn 0203, Brooklyn 0204, Brooklyn 0601, Brooklyn 0602, Brooklyn 0801, Queens 0105, and Queens 0102.
Option B: Modest Rental Projects
Modest Rental Projects with at least 6 and no more than 99 residential dwelling units that meet the eligibility requirements receive a 35-year benefit and up to three years of Construction Period benefits.
Option C: Small Rental Projects
Small Rental Projects with at least 6 and no more than 10 residential dwelling units that meet the eligibility requirements receive a 10-year benefit and up to three years of Construction Period benefits
Option D: Homeownership Projects
Homeownership Projects with at least 6 units must have an assessed valuation (AV) per square foot (SF) that does not exceed $89 per SF upon the first assessment after the Completion Date. Homeownership Projects that meet the eligibility requirements receive a 20-year benefit and a Construction Period benefit for up to three years
Wage Requirements
Below is a summary of the eligibility options available for ANNY Program Benefits. The option must be selected in the initial submission of any required Workbook and Application. Please refer to the Real Property Tax Law Section 485-x and Chapter 63 to Title 28 of the Rules of the City of New York for any additional requirements.
Other Provisions
How to Apply
HPD is currently in the process of updating certain application forms for ANNY Program Benefits. If you have additional questions, please contact 485-x_anny@hpd.nyc.gov or call (212) 863-6603.
Documents:
Note: The Applications and MWBE Affidavit contain interactive content that is best optimized by use of PDF services such as Adobe Acrobat and/or Adobe Reader.
Note: The Workbook is being provided solely to assist you in determining whether the requisite percentage of the dwelling units in the proposed Eligible Site meets Affordability Option A or Affordability Option B, as applicable, as set forth in RPTL § 485-x(1) as well as whether the Affordable Housing Units therein comply with the unit mix and distribution requirements set forth in Real Property Tax Law Section 485-x(8)(a) and (b). This spreadsheet is provided for your convenience only. HPD will review the initial monthly rents, unit sizes and unit locations proposed for the Affordable Housing Units for the proposed Eligible Site as part of the RPTL § 485-x Affordable Neighborhoods for New Yorkers Application and will determine whether the proposed Eligible Site meets these requirements in accordance with the provisions set forth in RPTL § 485-x and Chapter 63 of Title 28 of the Rules of the City of New York. It is the sole responsibility of the Applicant to complete this Workbook and to demonstrate compliance with RPTL § 485-x and Chapter 63 of Title 28 of the Rules of the City of New York.
If you have additional questions, please contact 485-x_anny@hpd.nyc.gov or call (212) 863-6603.