Ken Fisher discusses a major gamble taken by developers in Gowanus that will result in a major tax break for some developers for the next 25 years in The Real Deal. Three weeks before the city approval of a contentious rezoning in the Brooklyn neighborhood, numerous companies filed plans for three projects with more than 900 units.
The rezoning’s approval was considered a near certainty, however a major financial component of these and other multifamily projects was not. Affordable New York, the property tax exemption better known as 421a, is scheduled to expire on June 15, and some state lawmakers have already made clear that they will fight to stop its renewal.
“As we’ve seen before, it will turn into the ‘Hunger Games’ in terms of who can pull their permits and get their footings into the ground,” Ken said. “There’s a bulge in applications, just as there was [when] there was a renewal last time.”
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