421-a Tax Exemption

The 421-a Tax Exemption is a government program in New York City that encourages affordable housing development. It offers property tax reductions or exemptions to developers who build new residential buildings, usually with some affordable units. This helps lower construction costs and incentivizes creating more housing options. In return, developers agree to keep rents affordable for a certain period. The program aims to increase housing supply, especially affordable units, while providing financial benefits to developers. Overall, it balances encouraging development with community needs for affordable living.