December 9, 2016

NYC Developers Take Note: Potential Revocation of 421-a Property Tax Exemption

2 min

Owners of residential properties in New York City currently receiving 421-a property tax benefits may have received or may soon be receiving a notice from the NYC Department of Housing Preservation and Development (HPD) and/or the NYC Department of Finance (DOF) that their 421-a benefits may be revoked for failure to comply with requirements of the 421-a program. Owners, particularly owners who acquired properties without knowledge of prior 421-a filings, must take prompt action, possibly including corrections or supplementation of 421-a applications, rent registrations, and other filings, to avoid losing their very valuable 421-a benefits.

These notices relate to the latest investigations by NYC and/or NYS agencies into property tax exemption and abatement programs (421-a, J-51, etc.) and whether property owners/landlords have complied with the requirements of the benefit programs.

Owners of 178 buildings are being notified by HPD that they face revocation unless they comply with 421-a rent registration and/or other 421-a requirements. The compliance deadline for these properties is February 21, 2017 (90 days from issuance).

Owners of 3,103 buildings are being notified that they must obtain a 421-a Final Certificate of Eligibility by a specific date, or their 421-a benefits will be revoked by DOF.

Continued scrutiny of these and other property tax benefit programs is expected in the future. Please contact Venable for more information.