Real Estate Tax Incentives

Industry interviews, panel debates, and reports from CHPC add to the discussion over using tax incentives to address New York City’s housing needs.

The City of New York has been a forceful innovator in its use of real estate tax incentives to both encourage the new construction of housing and ensure the renovation of its existing older housing stock.

By utilizing an aggressive legislative agenda over the decades, the City has created myriad tax programs to address a wide range of housing needs, from the new construction of market rate housing, to aiding the long term financial viability of projects serving the poorest people with special needs.

Despite the success of these strategies, they have been criticized in recent years for giving away too much to some projects, not addressing some of the emerging needs of the existing housing stock, and hurting the City’s ability to collect much needed taxes.

CHPC decided to add to this debate with a project focused on tax incentives and their potential public policy role in the future.  A variety of different research methods are used including industry surveys, panel debates, and reports. You can read all of the results of this study below.

Funding for this project was provided by Enterprise Community Partners.

Featured Impact
The Future of Real Estate Tax Exemptions

Following an extensive survey and an expert panel discussion that took place in November, CHPC has now completed an in-depth report examining the future of real estate tax incentives, funded by Enterprise Community Partners. It sets out next steps for such programs and a way forward for the most effective use of these tax exemptions in the future. This report focuses on the four real estate tax exemptions and abatement programs which are most commonly in use today: J‐51, 421‐a, Article XI, and 420‐c.

Publications ×+

Inside Edge: the Future of J-51

The New York State law that authorizes the J-51 tax incentive program expired on December 31, 2011. This ended the authority of New York City’s Department of Housing Preservation and Development (HPD) to issue new benefits, and it has thus taken no J-51 applications since then.

Informatics ×+

Play "Inside the Rent"

Inside the Rent is designed to raise the player’s awareness about the challenges of building new rental housing without government intervention. With the imminent expiration of the 421-a property tax abatement legislation, questions about the cost of rental housing and the impact of tax abatements and other government subsidies are more relevant than ever.

Related Insights
November 18, 2011 - by CHPC
April 15, 2011 - by CHPC
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