"New York City renters have one number on their minds right now: zero. That's how much the leading mayoral candidate, Zohran Mamdani, has promised to raise the rent by for rent-stabilized tenants. But while everyone else is debating the proposed rent freeze, New York City developers have another magic number on their minds: 99. Under the city's new 485-x tax program, rental building projects that cross the 100-unit threshold trigger higher wage requirements for construction workers and stricter affordability rules (1)."
"The result? Builders are trimming down their plans and capping projects at 99 apartments to dodge the extra costs. Must Read For developers, it's a savvy move. For renters, desperate for more affordable housing, it's another setback in a city that is already short on housing options. What was designed to encourage construction of affordable housing and guarantee fair wages is now being gamed with surgical precision."
Zohran Mamdani has promised no rent increase for rent-stabilized tenants while developers respond to other incentives. The city's 485-x tax program links long property tax exemptions to project size, location, and required affordable units. Projects that meet or exceed 100 units trigger higher prevailing-wage requirements for construction workers and stricter affordability conditions. Many developers are redesigning or capping projects at 99 apartments to qualify for tax breaks while avoiding added labor costs and affordability mandates. The result is a shift toward smaller, slower, and less-affordable developments, potentially delaying the large-scale housing construction needed to address the city's affordability crisis.
Read at www.aol.com
Unable to calculate read time
Collection
[
|
...
]