421-a(16) Completion of Construction Extension Form Now Available: Deadline 9/12/24

The New York State Legislature recently amended the Real Property Tax Law Section 421-a(16) ("421-a") to provide for a completion of construction deadline extension to June 15, 2031 (previously June 15, 2026) (the "Extension"). Note that projects must have timely commenced construction on or before June 15, 2022 to qualify for 421-a property tax benefits. With respect to receiving the Extension, the following two limitations apply:

1. Project Applicants (or representatives) must complete a form of Letter of Intent which must be submitted to the New York City Department of Housing Preservation and Development on or before September 12, 2024. The form of Letter of Intent is available here: 421-a(16) Completion Extension - Letter of Intent
    
2. Affordability Options C and G (which permitted the affordability housing requirements to be satisfied by leasing 100% of the affordable units at 130% of Area Median Income) will not be available for projects completing construction after June 15, 2026; provided however, that the submission of a Letter of Intent will not be binding on the 421-a applicant’s election of an affordability option.

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For more information on real estate or real estate tax incentive matters, please contact:

Brett J. Gottlieb at 212 592 1455 or [email protected]

© 2024 Herrick, Feinstein LLP. This alert is provided by Herrick, Feinstein LLP to keep its clients and other interested parties informed of current legal developments that may affect or otherwise be of interest to them. The information is not intended as legal advice or legal opinion and should not be construed as such.