Policy Reports

421-a Building Analysis

REBNY Press

March 15, 2015

The 421-a partial tax exemption program is set to expire in June 2015. While some have called for the termination of the program, the negative effect on housing production would be significant if the 421-a program were not renewed. New York City would likely experience a sharp drop off in the production of new housing units, a major loss of middle income and other affordable housing construction, a continued skewing of the market toward condominium units rather than rental production, and further increase in housing costs.