421-a Compromise Reached; AY Carve-Out Reduced
Yesterday the city agreed to support a new version of the 421-a property tax abatement legislation that strips the bill of many of the controversial changes tacked on to it by Assemblyman Vito Lopez. Most notably, the deal ensures that the city will receive financing to build thousands of units of middle-income housing in Queens,…
Yesterday the city agreed to support a new version of the 421-a property tax abatement legislation that strips the bill of many of the controversial changes tacked on to it by Assemblyman Vito Lopez. Most notably, the deal ensures that the city will receive financing to build thousands of units of middle-income housing in Queens, and that Forest City Ratner will not receive 421-a abatements for Atlantic Yards unless the developer integrates market-rate and affordable units throughout the project. Lopez’s version of the bill earmarked a carve-out for Forest City worth an estimated $300 million while facilitating what critics called economic segregation in the residential components of Atlantic Yards. Forest City now says it will build the affordable and market-rate units of Atlantic Yards simultaneously, and HPD will certify that the developer has constructed the requisite number of affordable units in order to receive 421-a abatements for the project. The special carve-out for Atlantic Yards hasn’t been eliminated from the bill, however, it’s only been reduced: According to the New York Post, it’s been pared down to $200 million, while the New York Sun reports that the carve-out is now worth $150 million.
The bill that Lopez ushered through the Assembly in late June tweaked an earlier version of the legislation that the City Council and Mayor Bloomberg spent nearly a year negotiating. Over the past month the Bloomberg administration and many politicians have called on Governor Spitzer to veto the measure. The Legislature is expected to approve the new, city-endorsed bill in September; it would go into effect next summer.
Bill Aims to Spur Housing for the Poor [NY Times]
City Reaches 421-a Agreement [Crain’s]
City OK’s New Ratner Deal [NY Post]
Housing Options Added to Development Tax Bill [NY Sun]
AY Carve-Out Shrinks, Value Halved (?) [AY Report]
Ratner Compromise Still Special Treatment [Brownstoner]
Bloomberg Steps Up Pressure on 421-a Carve-Out [Brownstoner]
Pols Call for Ratner to Abandon 421-a Carve-Out [Brownstoner]
It is all beginning to make sense. Mr Bloombag and his cronies keep talking about making the City more “Green”
I thought he was talking about being environmentaly friendly when what he means is Green like the all mighty Dollar. When he is through with his grand design, the only people left in this city will be him and all the rest of the billionaires.
maybe instead of handing over so much of our hard earned tax dollars to Ratner, the city should take some initiative and use it to supervise and properly fix the subway system that the MTA has so badly milked for all it’s worth. judging from what happened this morning alone it needs it. i guess if bloomberg had ridden the subway this morning he would have some inkling about our public transit system.
one question, after giving Ratner our hundreds of millions in tax money, will the sewage overflow into the atlantic terminal subway the next time it rains like this? if so it would be great because then the MTA could hike our faire again ($4 or more by then) and not fix it. in bloomberg’s eyes everyone wins!!
I can’t believe that through a ‘compromise’ he got 2/3 of the money he didn’t deserve in the first place. If you want to see corruption in action look at the relationship between this sleazebag and the sleazes at city hall. It stinks to high heavens.