Building Trades

Building Owners Must Comply with 421a

November 29, 2016
By Neal Tepel

New York, NY – At a recent press conference at City Hall,  Mayor Bill de Blasio announced that the Department of Housing Preservation and Development (HPD) would be issuing letters to building owners that  their 421a tax benefits would be revoked unless they complied with the program guidelines, including registering their apartments as rent-regulated.

“Owners wrongfully receiving 421a are on notice — comply with the law or your tax benefits will be revoked. Since day one, my Administration has made enforcement of rent regulation laws and protecting tenants a priority. With our state and law enforcement partners, we will continue to fight for a reformed 421-a program that better serves New Yorkers,” said Mayor Bill de Blasio.

Both the city and state have monitoring programs to ensure compliance with 421a guidelines. The Real Estate Tax Compliance Program was launched last year by  Attorney General Eric Schneiderman to make sure building owners receiving benefits from the 421a program are following the mandate. Of the 285 buildings, 35 had their 421a benefits revoked this past September.

“The 421-a tax program is a two-way street: landlords who receive these lucrative tax benefits must afford their tenants rent-stabilized leases and protections. But investigations conducted by my office have found that some landlords are flouting these requirements and instead, using the tax break to simply increase their profits,” said Schneiderman.

“We will never hesitate to protect tenants or New York City’s affordable housing stock, which is critical to the economic stability of many families,” continued Schneiderman.

November 29, 2016

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