Governor Hochul Proposes to Extend 421(a)
On February 1, 2023, Governor Kathy Hochul announced her highlights of the fiscal year 2024 executive budget, including an extension of the 421(a) deadline.
The current 421(a) property tax abatement program requires that construction be commenced by June 15, 2022 and initial Temporary Certificate of Occupancy (TCO) 0btained by June 15, 2026. Governor Hochul is proposing to extend the completion deadline to June 2030, allowing developers four more years to complete their buildings. This extension is expected to assist many projects to move forward including an estimated 32,000 units of housing.