Property Ownership
In New York City, the 421-a tax exemption program is designed to:
AProvide a full exemption from property taxes for all residential buildings
BEncourage construction of new multiple-dwelling residential buildings by providing a temporary property tax exemption on improvements✓ Correct
CReduce property taxes for buildings that convert to cooperative ownership
DExempt retail buildings from commercial rent tax
Explanation
The 421-a program (named for the NYC Administrative Code section) provides a temporary property tax exemption on the increased assessed value of new or substantially rehabilitated multiple-dwelling residential buildings. In exchange for the tax benefit, developers in certain areas must include affordable housing units.
People Also Study
Related New York Questions
- New York City's 'Inclusionary Housing Program' requires or incentivizes developers to:Land Use & Zoning
- In New York City, the '421-a' tax exemption (now Affordable New York) incentivizes developers to:Property Management
- In New York City, 'mandatory inclusionary housing' (MIH) requires affordable housing units in new developments when:Land Use & Zoning
- In New York City, the 'Housing Maintenance Code' (Administrative Code Title 27) requires landlords to maintain properties at what minimum heat standard during the winter heating season?Property Management
- In New York, the federal Fair Housing Act's exemption for 'Mrs. Murphy' (owner-occupied buildings with 4 or fewer units) applies:Fair Housing
- In New York City, the 'J-51 tax exemption and abatement' program provides property tax benefits to owners of:Property Management
- Under the Fair Housing Act, the exemption for owner-occupied buildings with four or fewer units applies only if:Fair Housing
- The New York City Human Rights Law (NYCHRL) provides fair housing protections that are:Fair Housing
Key Terms to Know
Comparable Sales (Comps)
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
1031 ExchangeA tax-deferred exchange allowing investors to sell one investment property and reinvest proceeds in a like-kind property while deferring capital gains taxes.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
Math Concepts
Study This Topic
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 →