YuhTyng Patka’s Post

Affordable Housing Update: I was honored to moderate today’s Bisnow discussion of the critical 485-x tax exemption, the 421-a(16) tax exemption and City of Yes proposed zoning amendments with Eli Weiss of Joy Construction; Frank Monterisi of Related; HPD Asst. Commissioner Tricia Dietz; and Office of the Brooklyn Borough President, Antonio Reynoso. Important 485-x takeaways include: - Differences from the expired 421-a(16) program (deeper affordability requirements, clear exemption of market units from rent stabilization requirements, broader construction wage requirements, pre-commencement requirements such as notifying Comptroller / efforts to award 25% of applicable costs to minority or women owned businesses & registration with HPD within 6 months of commencement). HPD will be issuing rules which are expected to be in effect by early 2025. - Similarities to expired 421-a(16) program (calculation of the property tax exemption, similar construction requirements, similar application process, etc.). - The NYC City of Yes for Housing Opportunity (which upon NYC Council approval will amend zoning laws applicable to residential development) will also be a key development consideration. Will it reduce expensive parking requirements? Allow for larger residential buildings which contain permanently affordable units? The details will be crucial. https://lnkd.in/eXCKwh27 Important 421-a(16) Reminder: - Vested 421-a projects (commenced by 6/15/22) can qualify for an extension of time to complete construction (until 6/15/31) if they file a “Letter of Intent” with HPD on or before 9/12/24. https://lnkd.in/eQ_84erM For more information about 421-a(16), 485-x, the commercial conversion tax incentive 467-m or any NYC development issues, please contact me or my Rosenberg & Estis, P.C. colleagues. #485x #421a #AffordableHousing #TaxIncentives #NYCRealEstate #RealEstateAttorney #Bisnow #Moderatorlife

It sounds like the issue we have in Lewisville corporations buying homes and converting them into short-term rentals is causing concerns among homeowners due to the associated increase in property taxes. The proposed solution by the City Council to grandfather existing short-term rentals (STRs) while implementing new regulations for any new ones seems to be aimed at addressing the situation. Here are a few points to consider Lewisville: 1.Impact on Property Taxes The influx of short-term rentals owned by corporations can affect property taxes in the area, as these properties may be assessed differently or have a different tax status compared to owner-occupied residences. This can lead to an increase in property taxes for homeowners in the vicinity. 2. Community Stability The conversion of homes into short-term rentals can potentially disrupt the sense of community in residential neighborhoods. Short-term rentals may bring in transient guests, impacting the neighborhood's dynamics and long-term residents' quality of life. 3. Regulations and Zoning Implementing regulations for short-term rentals can help address concerns related to noise, parking, safety, and overall neighborhood character. By differentiating between existing and new STRs, the City Council can manage the growth of this industry while also respecting the interests of current residents. 4. Balancing Interests It's crucial for the City Council to strike a balance between promoting economic growth through tourism and maintaining the integrity of residential neighborhoods. Finding solutions that benefit both homeowners and businesses is key to ensuring a harmonious community. 5. Public Input Encouraging public input and participation in the decision-making process can help ensure that the concerns and perspectives of all residents are taken into account when formulating regulations related to short-term rentals not just the monthly people from the same neighborhood. Overall, the City Council's proposed approach of grandfathering existing STRs while creating new regulations for future ones appears to be a step towards addressing the challenges posed by corporate-owned short-term rentals in Lewisville. It's important for residents to stay informed about the developments and actively engage with local authorities to voice their opinions and concerns on this issue always take the 5 minutes it takes to vote on June 15th from 7am to 7pm. Need a ride to the polls for what ever reason. reach out to the Mallet on the Ballot Campaign to Schedule your ride to the polls. penny@pennymallet.com https://lnkd.in/gmDtskV6

The article discusses the impact of a tax break known as 421a on property values in New York City. The tax break, which expired in 2016 but was later revived, offers significant savings to developers who include affordable housing in their projects. The extension of 421a has led to an increase in property values, particularly in areas where affordable housing is in high demand. However, some investors remain cautious, as the tax break is set to expire again in 2022, and its future is uncertain. Overall, the article highlights the complex relationship between the 421a tax break, property values, and the need for affordable housing in NYC.

You might not immediately connect Historic Rehabilitation Tax Credits with affordable housing, but many projects funded by tax credits have created additional housing throughout. This article by Forbes dives into how pairing tax credits can make projects feasible. https://lnkd.in/eaH-kUrC #affordablehousing #rehabilitation #statetaxcredits #kentucky #historicregister #economicdevelopment #preservation #commercialproperty

The most-read story from the previous week's Developer's Digest®, published by Crain's New York Business, covers how New York City is advancing the 485-x tax break for affordable housing, replacing the expired 421-a program. Developers can now register online for 485-x and the five-year 421-a extension, which allows project completion by June 15, 2031. The 485-x program, offering up to 40 years of tax exemptions, requires projects to include affordable units and meet wage standards, with a $40 per-hour minimum for large projects. The 421-a extension eliminates a scheme allowing higher rents, ensuring more affordability. Despite industry concerns about reduced rental housing due to stricter rules, the Adams administration sees these tax breaks as crucial tools to address the housing crisis, with applications for 485-x launching by year-end and approvals beginning in 2025. To read more stories like this and to stay on top of the most recent news from the development world, subscribe to our Developer’s Digest® using the link below: https://bit.ly/3Qg1qXV #digest #dsa #nyc #weknowzoning #deveopmentsites #developmentnews

Florida strikes again! Florida is lowering its sales tax on commercial rent from 4.5% to 2.0%. This is great news for both tenants and landlords and will increase liquidity in FL's commercial rental markets. Florida has figured out the blueprint for success. Make your state as friendly as possible to investment, entrepreneurship and business in general.....and people will come in droves. The impact of the 1,200 daily relocations to FL will more than offset any potential budgetary shortfalls from reducing this tax. #florida #floridaman #realestate #floridaevangelism #goodpolicy Larry Genet Robbie Lober Bill Gray Moshe Genet Adam Dickert Jonathan Livi

A property tax exemption in New York City is necessary to make rental housing development financially feasible across the city’s varied markets, according to a new policy brief by the NYU Furman Center. To aid policy makers in determining whether a property tax exemption is needed to render mixed-income, multifamily rental housing a viable investment, and how a new exemption should be structured, the policy brief argues that a new tax exemption should: ◾ Efficiently spur robust new construction of rental apartments to address the city’s housing shortage ◾ Ensure that the exemption secures as much affordable housing targeted to the households in the city least able to afford stable, high quality housing as is financially feasible, without also inflating land values ◾ Be thoughtfully coordinated with other subsidy programs, zoning initiatives, and the City’s commitment to get housing built in every neighborhood ◾ Meet the City’s obligations under the Fair Housing Act to have more affordable housing in thriving, diverse neighborhoods ◾ Flexibly address the city’s very different neighborhood rental markets, yet be simple to administer and enforce to ensure that developers and owners who take advantage of the exemption live up to their obligations Check out the summary blog post here: https://buff.ly/3TFndrY Read the the policy brief here: https://buff.ly/3vCM6N2

One point overlooked in the discussion over expanded rent control is that it lowers property values and in turn, lowers tax revenues that impact everyone, as we explain in our latest article.

In Boston, the city wants to shift the burden from residential taxpayers to commercial...even with commercial values declining. This proposal would force commercial property owners to pay property taxes at a rate that is 200% of the residential rate. The conundrum the city is facing is difficult as vacancies lead to lower values and lower taxes which need to be made up somewhere. But will doubling the commercial rate disincentivize investors? https://lnkd.in/espMFByb

The Housing in Downtown program will provide 20-year tax abatements to the conversions above in exchange for at least 10% of the units being affordable at 60% Median Family Income (MFI) or 18% of units affordable at 80% MFI.