psy, Home Buyer in Queens, NY

What is a 421a tax abatement relating to a building?

Asked by psy, Queens, NY Sun Dec 29, 2013

Help the community by answering this question:

Answers

7
BEST ANSWER
3 votes Thank Flag Link Sun Dec 29, 2013
421 A is a tax abatement associated with new developments. The project will receive the 421 A abatement if the builder also builds affordable housing. The tax abatement can be for 10 -25 years based on geographic location. The developer is required to provide affordable housing in exchange for receiving 421-A tax benefits.

Best,

Mitchell Hall
Lic Assoc RE Broker
Corcoran
347-921-4255
mhall@corcoran.com
2 votes Thank Flag Link Sun Dec 29, 2013
Mitchell Hall, Real Estate Pro in New York, NY
MVP'08
Contact
A 421-a exemption is available for new housing developments with three or more units, located on sites that were vacant, underutilized, or had a “nonconforming” zoning use. Under the program, owners are exempt from paying the increase in property taxes that results from the new construction. For example, if the vacant land was valued at $1 million and the new property is worth $10 million after construction, the property owner will not be taxed for the $9 million increase in value for the exemption period. The program is available for condos, coops, or rentals. For condos and coops, there are no restrictions on sales price. For rental properties, the units must be registered under the rent-stabilization system. However, initial rents are set at market-value for the area. NYC's 421a tax exemption program, which encouraged development of underused or unused land by drastically reducing property taxes for a set amount of time. Buyers got what seemed to be an unbelievable deal on taxes, but it was only temporary and upon expiration their rates will rise to what everyone else is paying.For more information check this link: http://www.nyc.gov/html/hpd/html/developers/421a.shtml
1 vote Thank Flag Link Sun Dec 29, 2013
421a Tax Abatement: a tax reduction given by the government for a time{Approx. 10 yrs in most cases};


The 421a Program is meant to promote the building of condos on underutilized or unused land. In most cases,{the exemption lasts for 10 years, giving owners a 100 percent exemption from any increases in their real estate taxes for two years, then phasing out the exemption by 20 percent every two years over the remaining eight. In Upper Manhattan and the other boroughs, the exemption can last for 15 or 25 years.}


Tomeka S. Phifer
Tel.646.221.3172
1 vote Thank Flag Link Sun Dec 29, 2013
Here is an example - a condo I recently showed to a client priced just under 600K had monthly real estate taxes of $4. And that lasted for another 17 years. So it represents a substantial savings.
1 vote Thank Flag Link Sun Dec 29, 2013
If I purchased a condo with the 421 A abatement, must it be my primary residence? If not, can I rent it out and still qualify for the abatement?
Flag Fri May 23, 2014
It is a tax that lessen the tax burden to the owners/condominium for a period if time. This is an incentive to build and the city offers this. It is usually got 10years. The tax gradually increases for 10 years until it is to the full taxable amount. If you need any further information,
Carol L Breitman
CitiHabists
646-232-3554
1 vote Thank Flag Link Sun Dec 29, 2013
421a Tax Abatement: a tax reduction given by the government for a time{Approx. 10 yrs in most cases};


The 421a Program is meant to promote the building of condos on underutilized or unused land. In most cases,{the exemption lasts for 10 years, giving owners a 100 percent exemption from any increases in their real estate taxes for two years, then phasing out the exemption by 20 percent every two years over the remaining eight. In Upper Manhattan and the other boroughs, the exemption can last for 15 or 25 years.}
0 votes Thank Flag Link Sun Dec 29, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer