November 23, 2015
Meet 421a’s real beneficiaries: Landowners

When state lawmakers in June agreed to an overhaul of the 421a tax abatement program, Gov. Andrew Cuomo called the revisions the “best rent reform package in history.” Mayor Bill de Blasio even called them a “game-changer.” But the overhaul could also be, according to several studies, a giant boon to landowners. Programs like 421a push up land prices in the long run, enriching landowners at taxpayers’ expense. This raises questions about who will really benefit from a program the mayor hailed as ending “giveaways” to the real estate industry. NYU’s Furman Center published a report this month that argued proposed changes to 421a would make rental development more profitable and thus encourage it. Somewhat buried in the report is the connection between 421a and land prices. – See more at: the Real Deal