Issue Briefs

The legislature is poised to renew a tax break to New York's real estate industry that shortchanges affordable housing

The tax abatement on new multifamily residential real estate development known as 421-a cost New York City nearly $755 million last year in foregone taxes, or two-and-a-half times the level of property taxes forgiven under the program just five years earlier. The abatement, prized by the Real Estate Board of New York, expired last December. Now, the state legislature is poised to revive the tax break in exchange for the renewal of rent regulation, which expires June 15. As Albany trades 421-a renewal for the rent laws that protect the access to affordable housing of more than 1 million tenants in New York City alone, it is critical to understand the actual value of the tax abatement to developers and the ways in which the program as currently constructed gives out its benefits indiscriminately, in most cases without leveraging anything in exchange.

This issue brief from the Pratt Center details the cost of the 421-a abatement to New York City and recommends measures to better target the benefit to generate affordable housing and transit-oriented development.

Mayor Bloomberg has announced the appointment of a City Charter revision commission. While its review of term limits may initially grab the most attention, the commission will be looking at something else just as vital to the city’s future: land use and the process through which property owners, residents and the government decide what gets built in New York City.

The new Pratt Center issue brief "City Charter Revision: Where Land Use Fits In" outlines the major land use challenges the new commission must confront: 

• The City Planning Commission has ceased to plan
  
• The City Charter's aspiration to community-based planning has not been fulfilled 
• Attempts to promote "fair share" of burdens have fallen short
• Side agreements to land use decisions have proliferated without disclosure or enforcement

A renewed and independent role for the City Planning Commission, substantive support for community-based planning, an updating of fair-share to meet current realities, and disclosure and enforcement for side agreements are all essential measures for the new City Charter commission to implement.

Working with COMMUTE, a citywide coalition of community organizations working for transportation equity, the Pratt Center analyzed commuting patterns, the location of large employment centers, and existing bus routes to develop a proposal for a citywide bus rapid transit network. The Pratt Center's analysis has informed the New York City Department of Transportation's and MTA's current plans for rolling out bus rapid transit.