'It's egregious.' City comptroller calls for an end to tax incentive program for real estate developers

The five-decade old program offers tax incentives for real estate developers to build affordable housing.

News 12 Staff

Mar 17, 2022, 12:48 AM

Updated 820 days ago

Share:

A new report from City Comptroller Brad Lander finds that a program aimed at encouraging developers to create affordable housing is not getting the job done.
Lander was joined by city and state lawmakers in Downtown Brooklyn to call for an end to the 421-a program. The five-decade old program offers tax incentives for real estate developers to build affordable housing.
"We are building housing that our neighbors cannot afford and we're paying developers to do it," says Lander. "It's egregious."
Lander says as a result of the program, the city will give up $1.77 billion in 421-a tax breaks. He says that's more than the entire Department of Housing, Preservation and Development capital budget.
Local leaders say the problem is more than just dollars and cents. They say the program is a massive giveaway to those who don't need it. Lawmakers argue that the program doesn't help create truly affordable housing, so it's no longer needed.
Gov. Kathy Hochul introduced a replacement plan earlier this year in her executive budget. The Affordable Neighborhoods for New Yorkers program includes what Lander calls "very modest changes."
Lander recommends that state legislators let 421-a expire in June and develop a new program by the end of the year.


More from News 12