SUBJECT:

PURPOSE:

The real property tax exemption created by Section 421-a of the Real Property Law (421-a) was enacted in the 1970's. It was designed to encourage the creation of multi-unit dwellings at a time when New York City's residential housing market was in a crisis. The residential housing shortage has persisted to the present and has skewed the market for housing to the detriment of moderate/middle income tenants. BY the terms of its statute, the 421-a Tax Exemption Program will expire in December 2007.

The purpose of this hearing is to examine the need for the 421-a program. The hearing also seeks public input on viable proposals to enhance the 421-a program in such a way as to address the affordable housing crisis. In addition, the hearing gives the public a forum in which to comment on Assembly Bill 4408.

Persons wishing to present pertinent testimony to the Committee at the above hearing should complete and return the reply form as soon as possible. It is important that the reply form be fully completed and returned so that persons may be notified in the event of postponement or cancellation.

Oral testimony will be limited to ten minutes' duration. In preparing the order of witnesses, the Committee will attempt to accommodate individual requests to speak at particular times in view of special circumstances. These requests should be made on the reply form or communicated to Committee staff as early as possible.

Ten copies of any prepared testimony should be submitted at the hearing registration desk. The Committee would appreciate advance receipt of prepared statements.

In order to further publicize these hearings, please inform interested parties and organizations of the Committee's interest in hearing testimony from all sources.

In order to meet the needs of those who may have a disability, the Assembly, in accordance with its policy of non-discrimination on the basis of disability, as well as the 1990 Americans with Disabilities Act (ADA), has made its facilities and services available to all individuals with disabilities. For individuals with disabilities, accommodations will be provided, upon reasonable request, to afford such individuals access and admission to Assembly facilities and activities.

SELECTED ISSUES TO WHICH WITNESSES MAY DIRECT THEIR TESTIMONY:

1. If the 421-a program sunsets at the end of the year, what impact would it have on the creation of affordable housing units and on residential units in general?

2. What effect would the New York City (NYC) Local Law extending the 421-a Program have on the production of affordable housing units?

3. What are the primary obstacles to modifying the 421-a real property tax incentive offered in NYC to encourage the creation of affordable housing?

4. The term "affordable" is unclear under the parameters of the 421-a exemption. Should income restrictions be included in the statute defining affordable?

5. What measures are in place to ensure that owners who take advantage of the 421-a tax exemption for the development of rental units adhere to rent regulation guidelines?

PUBLIC HEARING REPLY FORM

Persons wishing to present testimony at the public hearing on the Real Property Tax Exemption 421-a and its correlation to affordable housing are requested to complete this reply form as soon as possible and mail it to:

Steve McCutcheon
Assembly Committee on Housing
80 South Swan Street
22nd Fl AESB
Albany, New York 12248
Email: mccutcs@assembly.state.ny.us
Phone: (518) 455-4355
Fax: (518) 455-7250

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