Governor Hochul has issued draft legislation for a new property tax exemption program called “Affordable Neighborhoods for New Yorkers” or “ANNY” which is intended to replace the expiring 421-a program. ANNY contains several key differences from the current 421-a program:
- Only 2 affordability options for rental projects with generally lower income and rent limits than the current 421-a program.
- 100% affordable homeownership (coop or condo) projects can qualify.
- Market Units are not subject to rent stabilization.
For more information about ANNY please see the chart below:
We will be monitoring the progress of ANNY during the current legislative session. We are cautiously optimistic that the Legislature and Gov. Hochul will use the proposal of ANNY as the basis for enacting an economically viable property tax incentive program which will be acceptable to all NYC multifamily stakeholders. For questions about ANNY or about the current 421-a program, please contact Daniel M. Bernstein or Nicholas DiLorenzo.
Due to the uncertainty of the ANNY program and potential changes during the legislative process, we encourage developers to remain focused on vesting under the current 421-a program by June 15, 2022. ANNY includes election language similar to the current 421-a statute that allows projects with a Commencement Date prior to June 15, 2022 to opt into the ANNY program so long as benefits have not been received pursuant to Section 421-a.