Property Management

In New York City, the '421-a' tax exemption (now Affordable New York) incentivizes developers to:

AAvoid building in high-density areas
BBuild multifamily residential buildings with affordable housing units in exchange for a long-term property tax exemption✓ Correct
CRenovate commercial buildings for office use
DConstruct single-family homes in outer boroughs

Explanation

The 421-a (now called the Affordable New York Housing Program) provides long-term property tax exemptions for new multifamily construction, in exchange for including a percentage of affordable units. It is a major tool for incentivizing housing development in NYC.

Related New York Property Management Questions

Practice More New York Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free New York Quiz →