The future of the 421
a property tax exemption in New York City By Harriet Robertson
HISTORICAL OVERVIEW As stated earlier the property tax exemption started in 1970, a time where by the New York was declining in investment and there was need to restore the condition. Since that time there have been adjustments made periodically to
foster growth of housing units that are more affordable by the occupants. The 421 program over the years has been able to construct about 3,000 properties with 117,000 thus benefiting the dweller. It is also worth considering that there are those who claim 421 tax exemptions was not after a simple and transparent property tax system but to reduce the burden of taxing in residential development after which it would bring in a new market rate in the city something that even the policy makers could not think of. Further the group says that with the tax exemption the housing problem shifted to affordability from abandonment. Adjustments started in 1980 where income restriction was included to the housing units responding to the house problem shift. The requirement was imposed in 1985 by the strongest markets in Manhattan at the time also
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ew York is a city in the U.S. In 1970, the city grew at a substantially slow rate and this conceived the idea of introducing the 421 tax exemption. The aim of tax exemption to date has been to make construction of multifamily houses in New York and its outskirts affordable. However some people argue that this method of tax exemption is the most unfair, opaque an expensive. They want other transparent methods adapted by the end of June 2022 as it is when the 421 tax exemption is deemed to end.
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