On June 16, 2022, buildings that had not yet commenced construction were no longer eligible for 421-a tax exemption benefits under the Affordable New York Housing Program (“ANY”). As a result, developers across the city rushed to start construction by June 15th. Since then, attorneys at Seiden & Schein, P.C. have been poring over concrete reports, pictures of pile installations, and foundation filings at DOB to establish whether or not projects had commenced construction in time.
Now that the rush to commence construction has subsided, we have seen a substantial increase in the number of potential purchasers looking to ensure that a given project would still be eligible for ANY benefits. With the value of the thirty-five year ANY benefit often eclipsing millions of dollars, developers looking to purchase projects that had supposedly commenced would be wise to consult an expert before getting locked into what might end up being a losing venture.
To ensure that the seller of your potential project is accurately representing the status of the project’s commencement, please contact Scott Schreiber at email@example.com, Jason Hershkowitz at firstname.lastname@example.org, or Jay Seiden at email@example.com, or give us a call at 212-935-1400.