As the New York City development community awaits a possible extension of the Section 421-a completion deadline, developers can still preserve, and even increase, the value of their asset in the event no such extension is granted.

A New Path for Unfinished Portions of Section 421-a Projects

The deadline for completing construction for Section 421-a real estate tax benefits is currently June 15, 2026. However, developers who will not be able to timely achieve that goal may be comforted to learn that Seiden & Schein, P.C. offers an alternative solution if a Temporary Certificate of Occupancy for all residential apartments has not been issued by that date: Apply for 421-a benefits for the completed section and create a for-sale condominium for the incomplete section of the building.

Maximizing Development Potential

By converting the residential apartments that will not be covered by at least a Temporary Certificate of Occupancy on or before June 15, 2026 into for-sale condominium units, developers can open doors to new markets and transform a timing setback into new possibilities for recovery of capital, all while maintaining Section 421-a eligibility on the residential rental apartments that were completed in accordance with the time requirements of the Section 421-a program.

Experience in Development Tax Incentives and Condominium Offerings

Seiden & Schein, P.C. stands at the forefront of development tax incentives and condominium offerings. With decades of experience representing developers ranging from small private family held companies to publicly traded corporations, our team is equipped with the knowledge and insights necessary to guide our clients through each and every step of the process.

From acquisition through sales and everything in between, let the attorneys at Seiden & Schein, P.C. be your trusted advisors in navigating the complexities of NYC real estate development.

For more information, please contact a partner in the Tax Incentives or Condominium Groups:

Alvin Schein  aschein@seidenschein.com

Jason C. Hershkowitz  jhershkowitz@seidenschein.com

Adam A. Levenson  alevenson@seidenschein.com

Jane Rosenberg  jrosenberg@seidenschein.com

Seiden & Schein, P.C.

570 Lexington Avenue, 14th Floor
New York, New York 10022
www.seidenschein.com

***Attorney Advertising: Prior results do not guarantee a similar outcome.