NEW YORK — Governor Andrew Cuomo introduced an affordable housing bill designed to replace the expired 421-a property tax law, which incentivized the construction of affordable housing.
The legislation, if passed, would grant a 35-year-long property tax abatement to developers who create residential projects with specific numbers of affordable units.
“This agreement will help fulfill the real need for more affordable housing in New York City while recognizing the work of the employees who build them,” Gov. Cuomo said in a release.
The new proposal, which Cuomo is calling “Affordable New York,” will create 2,500 units per year of affordable housing, according to the governor’s office. The units will stay affordable for 40 years: a 5-year increase compared to the previous requirement. Construction workers on eligible projects would earn $45-$60 an hour, depending on the development’s location.
“The new law will lead to the creation of desperately needed rental housing, including many more affordable units, throughout New York City,” said Real Estate Board of New York Chairman Rob Speyer. “It will also generate more well paid jobs for New Yorkers.”