The Future of Real Estate Tax Incentives
The City of New York has been a forceful innovator in its use of real estate tax incentives to both encourage the new construction of housing and ensure the renovation of its existing older housing stock.
By utilizing an aggressive legislative agenda over the decades, the City has created myriad tax programs to address a wide range of housing needs, from the new construction of market rate housing, to aiding the long term financial viability of projects serving the poorest people with special needs.
Despite the success of these strategies, they have been criticized in recent years for giving away too much to some projects, not addressing some of the emerging needs of the existing housing stock, and hurting the City’s ability to collect much needed taxes.
CHPC decided to add to this debate with a project focused on tax incentives and their potential public policy role in the future. A variety of different research methods are used including industry surveys, panel debates, and reports. You can read all of the results of this study below.
Funding for this project was provided by Enterprise Community Partners.
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Play Inside the Rent Now!
Rents in New York City are among the highest in the country, and many of its residents question why the new developments they see going up around them cannot include more affordable units at lower rents. Suspicion is often cast upon developers, who are commonly assumed to make inordinate profits off the backs of renters. And while for-profit developers certainly seek a healthy return on their investment, many other factors also contribute to explaining what makes rents in New York City high.
Inside the rent is an educational game intended to help the player better …Read more
Inside Edge: the future of J-51
The New York State law that authorizes the J-51 tax incentive program expired on December 31, 2011. This ended the authority of New York City’s Department of Housing Preservation and Development (HPD) to issue new benefits, and it has thus taken no J-51 applications since then.
In the past renewal of J-51 has been virtually automatic. However the current attempt at renewal has been delayed due to questions relating to the cost of the program, outdated benefit schedules, concerns about processing inefficiency and rent stabilization issues.
As of last week HPD has put forward a proposal to address the renewal …Read more
J-51 and Gentrification
The J‑51 tax incentive program, the most successful housing rehabilitation program in New York City history, expired on December 31, 2011 (The “J‑51” program is §11‑243 of the NYC Administrative Code, which is authorized by §489 of the New York State Real Property Law).
It will be up to the New York State legislature to decide to renew the program and under what terms. However one likely argument that will be made, that J‑51 somehow contributes to gentrification of neighborhoods, seems to have been already addressed by the Court of Appeals.
In the 1950’s New York City still had …
New Report: The Future of Real Estate Tax Exemptions
The importance of real estate tax incentives in New York City are widely understood across the housing and urban planning industry. However, as New York City’s need for real estate tax revenue increases, the benefits of tax exemption programs are subject to increasing scrutiny.
Following an extensive survey and an expert panel discussion that took place in November, CHPC has now completed an in-depth report examining the future of real estate tax incentives, funded by Enterprise Community Partners. It sets out next steps for such programs and a way forward for the most effective use of these tax exemptions in …Read more
Tax Exemption Panel Discussion
To provide a framework for the discussion of these issues, CHPC has interviewed 28 key industry participants and policy makers.
Their insights were the basis of a panel discussion held on November 17, 2011 at the JPMorgan Chase conference center in downtown Manhattan. Rafael Cestero, Managing Director of L&M Development Partners, John McCarthy, Executive Vice President and Chief Operating Officer of the Community Preservation Corporation, Aileen Gribbin, partner at Forsyth Street Advisors, and George Sweeting, Deputy Director of the Independent Budget Office, led by CHPC Senior Fellow Harold Shultz discussed the issues surrounding tax incentives as they are and as …Read more