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FOR IMMEDIATE RELEASE
October 15, 2002
PR-270-02
www.nyc.gov


MAYOR MICHAEL R. BLOOMBERG SIGNS BILL TO SPUR DEVELOPMENT OF AFFORDABLE HOUSING

Remarks by Mayor Bloomberg at a Public Hearing on Local Laws


"The next bill before me today is Introductory Number 87, sponsored by Council Members Provenzano, Comrie and McMahon. Intro. 87 will expand the application of 421-A real property tax benefits facilitating construction of much needed affordable housing.

"The 421-A program was created in 1971 to provide a tax incentive for the construction of new multiple dwellings on sites that are either vacant or underutilized. To date, this program has been instrumental in creating over 132,000 units of housing throughout the City, many of them for low-income families.

This change will enable developers of sites zoned for residential use to take advantage of this tax benefit at any time three years prior to the start of construction. The alternative would be for the developer to demolish the existing structure and wait three years to begin the construction of new housing or allow the site to continue being underutilized indefinitely.

"Eliminating the three-year requirement will allow the City to facilitate the development of more affordable housing by providing the incentive necessary to spur rehabilitation in neighborhoods and in buildings that might otherwise remain unattractive to developers. The greater availability of 421-A benefits will facilitate the much-needed construction of new affordable housing throughout the City while creating more jobs for the City's economy."

 

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Contact: Edward Skyler / Jerry Russo
(212) 788-2958