The New Program was implemented by HPD in October 2017 to replace the expired 421-a program. The provisions of the New Program create several affordability options. To qualify for the tax benefit, developers of all rental projects, regardless of location, must build, market and maintain affordable units.
These affordable units must be properly allocated within the building(s), marketed in accordance with the City rules and procedures, and maintained throughout the length of the exemption.
The condo projects containing no more than 35 dwelling units and developed outside Manhattan may also qualify. In order to be eligible, the average assessed value for all residential units cannot exceed $65,000 immediately after completion of construction. In addition, each buyer must agree in writing to maintain their respective unit as primary residence for no less than 5 years.