New York State Governor Kathy Hochul recently announced a preliminary budget agreement with state lawmakers that would include a replacement for the 421a affordable housing tax credit that expired in 2022. Governor Hochul’s office said the replacement, known as 485x, would be a new tax incentive but did not provide additional details. The Real Deal reported that 485x would provide up to a 40-year property tax exemption in exchange for housing developments that create permanently affordable apartments.
The proposed budget agreement also includes a six-year extension of the expired 421a tax credit for buildings that meet a certain percentage of affordable housing.
