New multifamily projects fall sharply after 421a expiration

Developers filed far fewer projects in the months since the 421a tax exemption expired earlier this year, a test of wills between legislators opposed to the tax break and developers who claim they need it to underwrite financially stable projects. Only 65 projects have been filed over the past three months, the lowest number in a three-month period in at least 10 years, according to a PincusCo analysis of New York City Department of Buildings filings.

The state legislature allowed the project to expire without a replacement. A project needed to have its a footing or foundation on or before June 15, 2022, to be eligible for the benefit.

PincusCo is counting projects of four units and up as multifamily, and excluding any hotel projects.

The number of planned units also declined, in line with the number of filings.

One of the largest plans filed last month was submitted by Coleen Ceriello, executive director of Rocklyn Asset Corp., which manages non-religious real estate for the Roman Catholic Church’s Diocese of Brooklyn and Queens. She filed a new building construction project for a 353-unit, 319,196 square-foot residential (R-2) building at 2797 Atlantic Avenue in Cypress Hills, Brooklyn. The plan was filed on September 28, 2022. It calls for the construction of a 140-foot-tall, 14-story, two-tower building and was filed with the New York City Department of Buildings under job number B08003566. The architect is Marvel. The project is described in the filing as: New 14-story mixed-use building.