The 421-a partial real estate tax exemption program (a/k/a Affordable for New York or AFNY) includes various requirements that must be met to obtain and maintain benefits. It is, therefore, critical for both lenders and purchasers of multifamily buildings in New York City that have received or will receive 421-a benefits to retain experienced 421-a counsel to perform due diligence and confirm eligibility and compliance with all aspects of the 421-a program, including timing, affordable housing requirements, rent stabilization and program leasing guidelines.
In addition to assisting developers in the 421-a application process itself, Seiden & Schein, P.C. regularly represents lenders and prospective purchasers of 421-a buildings by reviewing all relevant 421-a application and compliance materials to confirm eligibility, evaluate any outstanding issues that could jeopardize the property’s tax exemption status and, if necessary, negotiate corrections or remedies with HPD, DHCR, or other critical parties.
Seiden & Schein, P.C. also represents owners and buyers of buildings that are about to exit the 421-a program in order to determine the adequacy of 421-a riders in leases and lease renewals, which is critically important in order to know which apartments can be deregulated after the expiration of 421-a benefits.
Ensure eligibility and compliance for this valuable real estate tax incentive. If you are interested in lending to or purchasing a potential 421-a property, please contact the attorneys at Seiden & Schein, P.C. by phone at (212) 935-1400 or by email at email@example.com.
Seiden & Schein, P.C.
570 Lexington Ave., 14th Fl.
New York, New York 10022
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