421-a Tax Abatement

421-a provided property tax exemptions for new residential construction in NYC. In exchange, developers had to include a percentage of affordable units. The program expired for new projects in 2022 and was succeeded in 2024 by 485-x (Affordable Neighborhoods for New Yorkers), which carries stricter affordability and construction-wage requirements.

Existing 421-a benefits continue to run out on their original schedules — typically starting at 100% exemption and gradually reducing to 0% over 15-35 years depending on the program version. 421-a units are rent-stabilized for the duration of the benefit period. When evaluating properties with 421-a, it's critical to understand the abatement schedule and expiration date, as tax bills increase significantly as the benefit phases out.