| Wat type of Project each applies to |
Conversions of eligible non-residential buildings to residential use
Typically office- to- residential conversions
Intended to encourage housing development through conversion of existing buildings |
New multifamily residential construction projects
Ground- up residential development
Applies to rental housing developments complying with affordability requirements
Intended to encourage new housing production |
| Eligibility |
Converting non- residential buildings to residential use
Building must have 6 or more dwelling units after conversion
Conversion must start after December 31, 2022 and on or before June 30, 2031
Construction must be complete on or before December 31, 2039
BUilding must operate as rental housing and comply with affordability requirements |
Applied to qualified new residential construction projects
Requires 6 or more dwelling units
Construction must start after June 15, 2022 and on or before June 15, 2034
Construction must be completed by June 25, 2038
Must comply with applicable affordability requirements, and wage requirements for certain larger projects |
| Affordability requirments |
At least 25% of dwelling units must be affordable housing
At least 5% of all units must be affordable at 40% AMI
Affordable units must not exceed 8% AMI weighted average
No more than 3 income bands, with no bands exceeding 100% AMI
Affordable housing units must be permanently affordable and rent stabilized |
All Affordable Housing units will be permanently affordable and all Restricted United, including Affordable Housing Units and dwelling units subject to Rent Stabilization in accordance with Option C, will be permanently rent stabilized All Restricted units occupied by tenants whose eligibility was approved by HPD also remain subject to Rent Stabilization until such tenants vacate if such tenants occupied unit before the application was denied , never filed, or withdrawn
can i add this for 485-x: All Affordable Housing units will be permanently affordable and all Restricted United, including Affordable Housing Units and dwelling units subject to Rent Stabilization in accordance with Option C, will be permanently rent stabilized All Restricted units occupied by tenants whose eligibility was approved by HPD also remain subject to Rent Stabilization until such tenants vacate if such tenants occupied unit before the application was denied , never filed, or withdrawn |
| Tax benefit and Duration |
- During Construction: 100% tax exemption up to 3 years
- Years 1-30: 90% tax savings inside MPDA, 65% outside MPDA
- Year 31: 80% inside MPDA, 50% outside MPDA
- Year 32: 70% inside MPDA, 40% outside
- Year 33: 60% inside MPDA, 30% outside MPDA
- Year 34: 50% inside MPDA, 20% outside MPDA
- Year 35: 40% inside MPDA, 10% outside MPDA
|
Option A
• Very Large 150+ units in Wage Zone A
• 5 year 100% construction benefit; years 1-40 100% Exemption + mini tax
• Very Large 150+ units in Wage Zone B
• 3 year 100% construction benefit; Years 1-40 100% exemption + mini tax
• Large 100+ units
• 3 year 100% construction benefit; Years 1-40 100% exemption + mini tax
Option B
• Modest 6-99 units
• 3 year 100% construction benefit + mini tax; Years 1-25 100% tax exemption + mini tax; Years 26-35 20% tax exemption + mini tax
Option C
• Small 6-10 units outside of Manhattan on zoning lots permitting less than 12,500 square feet for residential use
• 3 year 100% tax exemption + mini tax; 10 year 100% tax exemption after construction + mini tax
Option D
• 3 year 100% construction benefit + mini tax; Years 1-14 100% Years 15-20 25% after construction benefit + mini tax |
| How they interact |
Intended for conversion projects
Cannot be combined with 485-x on the same project
Project type determines which incentive is available |
Applies to qualifying new construction projects
Cannot be combined with 467-m on the same project
Project type determines which incentive is available |
