One year after the end of 421a, see condo listings with tax abatements

By CityRealty Staff | From Future New York Wednesday, June 14, 2023

Williamsburg loft with fireplace, courtyard views, and low monthlies thanks to a tax abatement (Oosten, #L53 - Compass)

Just as some New York residents pay dramatically lower rents than their peers, some of their condo-owning counterparts pay only a few dollars a month in real estate taxes. However, there is one crucial difference between the two: While they are few and far between, rent-stabilized units are still out there and coming onto the market every now and then. Availabilities in condos built under the 421a tax abatement program, on the other hand, are getting fewer and far between to a point where there will eventually not be any more of them.

This is largely because the buildings are no longer taking shape following 421a's expiration on June 15, 2022. This article takes a look at what 421a was, other types of tax abatements, and a small handful of listings in these buildings.

A history of 421a

The 421a tax exemption program was started in 1971 to encourage the development of underutilized or vacant property by dramatically reducing property taxes for a set amount of time. Developers who qualified could benefit from exemptions that usually last between 10 and 25 years, and the tax breaks were passed on to buyers of units within the building. The 421a program came to an end at the beginning of January 2016, but Governor Cuomo released a new version of the plan, dubbed Affordable New York, in January 2017. Before the most recent version expired, developers embraced it as a way to ease the cost of doing business in New York Some housing activists, though, viewed it as a handout to wealthy developers.

In the months before the 421a program expired, statistics show that building permits surged as developers tried to break ground in time to qualify for the tax breaks. But in the months that followed, new building permits plummeted and the city has seen fewer new rental developments. Some developers have pivoted their projects to condos; others have decided to build all-affordable developments with some help from the Department of Housing Preservation and Development; and there is very little in the way of middle ground. Elected officials agree on the need for a solution, but are divided on what form that might take.

In the meantime, the majority of the condos that secured an exemption before 421a's expiration have welcomed residents. While some of these benefits will last into the 2040s, it is important to note that these reduced taxes will not last forever. Buyers should be prepared for eventual sticker shock and ensure that they can pay both the reduced and full taxes.

Circa Central Park, home of a 25-year tax abatement (The Corcoran Group)

Other Types of Tax Abatements:

421a spent years as one of the main tax abatement programs in New York, but it was not the only one. One overarching program for apartment buyers is the New York City Cooperative and Condominium Tax Abatement where qualifying co-op and condo unit owners can receive a property tax reduction ranging from 17.5% to 28.1% a year. The amount of the abatement is based on the assessed value of the residential units. The condo owner/co-op shareholder must use the unit as their primary residence and cannot qualify if the unit already benefits from a J-51 exemption, 420c, 421a, 421b, or 421g tax abatement programs. Read more here.

The 421-g Tax Incentive program was a real estate tax exemption and abatement for the conversion of commercial buildings, or portions of buildings, into multiple dwellings. It applied to areas of Lower Manhattan south of Murray Street, City Hall, and the Brooklyn Bridge. Read more about the exemption here.

The J-51 property tax exemption program was granted to residential buildings (typically rent regulated) to encourage and subsidize renovations. According to the city’s website, a J-51 property tax exemption effectively freezes a building’s assessed value in its pre-renovated state. Thus the owner or shareholders do not have to pay the increase in property taxes caused by the increase in assessed value from the rehabilitation work. It expired in June 2022, shortly after 421a, but the New York State Legislature recently passed the Affordable Housing Rehabilitation Program, which serves as a J-51 replacement.

Tax abatement expiring 2030
191 Spencer Street, #2B
$925,000 (+2.9%)

Bedford-Stuyvesant | Condominium | 1 Bedroom, 1.5 Baths | 1,040 ft²

191 Spencer Street, #2B (Corcoran Group)

From the Listing: This sprawling legal 1.5-bed, 1.5-bath home is as generous in space as it is in versatility. As you enter this home through a keyed elevator, its generous space is in the spotlight. The spacious living room allows you to allocate for furniture big and small, while creating the perfect space for living and entertaining. The spectacular open chef's kitchen features a premium Frigidaire appliance package complemented by granite countertops, an Ann Sacks designer backsplash, and white shaker style cabinetry. This home features a den which creates the perfect opportunity to have a designated home office or sleeping nook for guests. Off of the bedroom, there is an unobstructed balcony which receives generous eastern sunlight. See floor plan and full details here.

J51 tax abatement expiring tax year 2030/31
The 153 Chauncey, #2B
$585,000 (-2.3%)

Bedford-Stuyvesant | Condominium | 3 Bedrooms, 1 Bath | 710 ft²

The 153 Chauncey, #2B (Douglas Elliman Real Estate)

From the Listing: Residence 2B is a 710 SF three-bedroom and one-bathroom, offering incredible value for the space and the quality. Modern elements and bold, industrial finishes complement each other to establish a contemporary and neutral design. The kitchen includes custom designed cabinetry with soft closing hinges and tracks, premium natural stone countertop, and a Samsung appliance package. The bathroom features white subway wall tiles, custom vanities, wood paneled ceilings, and industrial design elements, harmonizing traditional and modern elements. See floor plan and full details here.

Tax abatement expiring June 30, 2032
Gateway Tower, #10N
$1,250,000 (-3.5%)

Harlem | Condominium | 2 Bedrooms, 2.5 Baths | 1,300 ft²

Gateway Tower, #10N (Corcoran Group)

From the Listing: Move right in to this spacious two- bedroom/convertible 3-bedroom, 2.5-bath condominium apartment, just three blocks from Central Park and two blocks from Morningside Park. You will enjoy your open kitchen and huge living room, ideal for entertaining and gracious living. The large primary bedroom suite features three large windows, open views, ensuite bath and a walk-in closet. The kitchen includes a Jennair range, wine fridge, ample counter space and abundant storage. Adjacent to the living room is a balcony with open views that comfortably seats two. See floor plan and full details here.

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Tax abatement expiring 2032
51 Jay Street, #1A
$1,895,000

DUMBO | Condominium | 2 Bedrooms, 2.5 Baths | 1,391 ft²

51 Jay Street, #1A (Compass)

From the Listing: 51 Jay Street, Unit 1A, a spectacular spacious loft in a beautifully converted warehouse, is DUMBO living at its best. Every detail throughout this residence speaks of expert craftsmanship and the finest materials that marry well with the industrial elegance of the building. Herringbone flooring and the (almost) floor-to-ceiling walls of casement windows add to the loft-like feel of the home. Upon entering, you'll be greeted by 9'8" ceilings and a handsome chef's kitchen outfitted with La Rochelle Gris slab marble countertops, custom cabinetry by Aster Cucine and a Gaggenau appliance package. The apartment's highlight is the primary suite, which is uniquely large and luxurious and includes a custom-built designer closet and shelving that is sure to impress. See floor plan and full details here.

Tax abatement expiring in 2032
The Sutton, #10C
$2,400,000

Midtown East | Condominium | 2 Bedrooms, 2 Baths | 1,340 ft²

The Sutton, #10C (Corcoran Group)

From the Listing: Encompassing 1,340 square feet, featuring an open kitchen/dining/living room and split bedrooms, this thoughtfully designed residence is the perfect city pad. The apartment is bright and airy with 10.5-foot ceiling height and magnificent encasement windows facing east. The chef's kitchen is replete with the latest Gaggenau 4-series appliances, a Summit wine cooler, polished white glass countertops and backsplash, modern ribbed glass cabinets and an oversized kitchen island with seating, opening to the living/dining area. The two generously sized bedrooms are split and feature expansive closet space. See floor plan and full details here.

Tax abatement expiring in 2032
Dutch LIC, #208
$1,375,000

Long Island City | Condominium | 2 Bedrooms, 2 Baths | 1,097 ft²

Dutch LIC, #208 (CORE Group Marketing LLC)

From the Listing: South-facing corner unit boasts generous space and ceiling heights reaching nearly 10' and is complete with wide plank oak hardwood flooring. The king-sized primary bedroom is a tranquil private living space with an en-suite windowed bathroom. The second bedroom features great usable space and customized closets. A thoughtfully designed open kitchen finished with quartz stone counters and a tiled snow and ice backsplash is equipped with a full suite of stainless-steel appliances. See floor plan and full details here.

Tax abatement active until 2033
Oosten, #L53
$3,125,000

Williamsburg | Condominium | 3 Bedrooms, 3.5 Baths | 3,486 ft²

Oosten, #L53 (Compass)

From the Listing: No detail has gone unnoticed in this awe-inspiring loft. As you enter through the elegant double glass foyer doors, you are greeted with a 56-foot wide blank canvas of endless creative design potential. The southern and northern exposures provide an illuminated and blissful home oasis away from the turbulence of city life. To even further the ambiance, the living room also includes an Ecosmart fireplace to enjoy while relaxing on the couch and electric blackout shades for shutting out the world. As you enter the kitchen, your eyes will gravitate towards this state-of-the-art chef's dream workstation, adorned in Calcutta and Carrera marble. As you enter the primary suite, it will be difficult for any clothing aficionado to miss this luxurious custom dressing room, giving perfect visibility into your daily morning wardrobe routine. There is enough room to create a separate sleeping and lounging area, accompanied with a serene en-suite bath that includes a rainfall standing shower and a deep soaking tub. See floor plan and full details here.

Tax abatement until 2037
70 Charlton, #7G
$1,495,000 (-11.8%)

SoHo | Condominium | 1 Bedroom, 1 Bath | 824 ft²

70 Charlton, #7G (Compass)

From the Listing: Welcome to 7G, a chic, south-facing one-bed, one-bath with dining alcove. This oversized residence boasts an open gourmet kitchen outfitted with Miele appliances, abundant cabinetry and vented range hood. The tranquil bedroom features a large walk-in closet with custom walnut built-ins. A well-appointment bathroom includes a soaking tub and plenty of storage space. Other features of this mint- condition apartment include wide-plank oak floors, high ceilings, in-unit washer/dryer, custom lighting and window treatments. See floor plan and full details here.

Tax abatement until 2038
242 Broome Street, #10D
$2,625,000 (-6.1%)

Lower East Side | Condominium | 2 Bedrooms, 2 Baths | 1,287 ft²

242 Broome Street, #10D (Brown Harris Stevens Residential Sales LLC)

From the Listing: Enjoy spectacular light and mesmerizing views from this impeccably sited modern home that sits at the nexus of the Lower East Side, one of New York's most fashionable and storied neighborhoods. The open living/dining room is perfect for entertaining and takes full advantage of the dazzling sunrises and sunsets from multiple exposures. The chef's kitchen offers warm grey walnut cabinetry with a Calacatta marble countertop, backsplash, and kitchen island. The apartment was extensively upgraded with Lutron controlled Ketra lighting, built in Sonos speakers and automated blackout and solar window treatments. See floor plan and full details here.

Tax abatement until 2040
One West End, #21F
$6,499,000 (-3%)

Riverside Dr./West End Ave. | Condominium | 4 Bedrooms, 4.5 Baths | 2,836 ft²

One West End, #21F (Compass)

From the Listing: Welcome home to this generous 2,836 square-foot corner four-bedroom, four-and-a-half bath residence designed by Jeffrey Beers, wrapped in floor-to-ceiling windows showcasing spectacular river and city views to the south and west. The entire apartment is outfitted with motorized shades with solar and blackout modes. A rich walnut residential entrance door complemented by a brushed bronze newspaper box and Nanz hardware invites one into a welcoming foyer and the exceptionally finished space featuring seven-and-a-half-inch wide walnut plank flooring. The Italian-crafted custom-designed Scavolini kitchen is open to the corner living room and outfitted with walnut cabinetry accented by champagne matte glass panels. The south-facing corner primary bedroom features two oversized customized California walk-in closets and a luxurious en-suite five-fixture bath. See floor plan and full details here.

Tax abatement until 2040
One Manhattan Square, #48G
$2,455,000

Lower East Side | Condominium | 2 Bedrooms, 2 Baths | 1,156 ft²

One Manhattan Square, #48G (Corcoran Sunshine Marketing Group)

From the Listing: Residence 48G is a 1,156-square-foot two-bedroom, two-bathroom, with an open gourmet kitchen and breakfast bar. This spacious corner residence faces northeast and southeast with expansive Midtown, East River and Manhattan Bridge views. Warm, modern interiors are brought to life by the renowned design team at Meyer Davis Studio. This residence features imported stone and custom finishes, premium Miele appliance package, 5" wide stained oak flooring, master bath with custom wood cabinetry, marble tile walls and mosaic floors with radiant heat, under-mount Wetstyle sink with glass vanity top and Dornbracht polished chrome faucets and a washer and dryer. See floor plan and full details here.

Tax abatement expiring in 2042
Navy Green, #11E
$765,000

Clinton Hill | Condominium | 1 Bedroom, 1 Bath | 718 ft²

Navy Green, #11E (Corcoran Group)

From the Listing: Soaring on the 11th floor with eastern exposure and city views, this apartment also showcases sleek 5" white oak floors and graciously-sized rooms with oversized picture windows, and abundant closet space including a walk-in. Pass through the open kitchen featuring quartz countertops, ceramic backsplash, full-sized stainless steel appliances made by Bosch and Kitchen Aid, and custom white cabinetry into a spacious living/dining area filled with natural light. Wake up from the sun gleaming into the bedroom that's large enough for a king-sized bed and a workstation for those working from home! After a long day, the spa-like bathroom awaits. See floor plan and full details here.

Tax abatement expiring in 2042
Circa Central Park, #PH10A
$5,995,000

Harlem | Condominium | 5 Bedrooms, 4.5 Baths | 2,771 ft²

Circa Central Park, #PH10A (Corcoran Group)

From the Listing: Enter into an expansive living/dining room area with unobstructed park views, a perfect place for entertaining. Enjoy endless possibilities with custom Italian cabinetry that provides ample storage space, a generously sized natural stone topped center island as well as an additional counter prep station, Sub-Zero side-by-side custom paneled refrigerator and freezer, Bosch gas cooktop with vented hood, warming drawer, paneled dishwasher, and wine cooler. Step out onto your private terrace, conveniently located off the living/dining room, and enjoy the warmth of an indoor/outdoor fireplace overlooking expansive city and Central Park views. The primary bedroom offers the ultimate in privacy and magnificent views of Central Park and beyond through floor-to-ceiling curved glass windows. A storage unit is included in the sale. See floor plan and full details here.

Tax abatement in place until 2045
One Morningside Park, #9A
$1,650,000

Harlem | Condominium | 2 Bedrooms, 2 Baths | 1,108 ft²

One Morningside Park, #9A (Cooper & Cooper Real Estate LLC)

From the Listing: This spacious and sunny two-bedroom, two-bathroom home is a treat to spend time in. The entire space is flooded with south and western light, and the large casement windows allow for all of the city sights to come through. Entertaining at home will be a breeze while you're prepping and cooking in your well-organized kitchen. The south-facing primary suite is lovely - a king-size bed will fit easily, and your walk-in closet along with beautiful built-ins are a wonderful use of space. The highlight of 9-A is the bright living room that flows out onto the wraparound private balcony, where you can relax with a cup of coffee or glass of wine. See floor plan and full details here.

Tax abatement expiring in 2045
Brooklyn Point, #46H
$2,278,355

Downtown Brooklyn | Condominium | 2 Bedrooms, 2 Baths | 1,175 ft²

Brooklyn Point, #46H (Serhant LLC)

From the Listing: A pristine corner residence nestled in the prestigious Brooklyn Point development, this stunning 2-bedroom, 2-bathroom home is a portrait of contemporary Brooklyn living. Features of this massive home include beautiful wide plank stained oak floors, floor-to-ceiling windows with southern and western exposure and panoramic views of Brooklyn, an in-home washer/dryer, and a harmonious light wood color palette with satin copper fixtures and finishes designed to accentuate space and natural light. A welcoming foyer adorned with a coat closet and full bathroom flows into a spacious open-concept living room, dining room, and kitchen saturated with natural light. A thoughtful split-wing layout gives each bedroom enjoys a comfortable level of privacy. See floor plan and full details here.

Would you like to tour any of these properties?

This is your member's center

In this article:

A history of 421a

Other Types of Tax Abatements:

Tax abatement expiring 2030
191 Spencer Street, #2B
$925,000 (+2.9%)

J51 tax abatement expiring tax year 2030/31
The 153 Chauncey, #2B
$585,000 (-2.3%)

Tax abatement expiring June 30, 2032
Gateway Tower, #10N
$1,250,000 (-3.5%)

Select which properties are of interest to you:

Tax abatement expiring 2032
51 Jay Street, #1A
$1,895,000

Tax abatement expiring in 2032
The Sutton, #10C
$2,400,000

Tax abatement expiring in 2032
Dutch LIC, #208
$1,375,000

Tax abatement active until 2033
Oosten, #L53
$3,125,000

Tax abatement until 2037
70 Charlton, #7G
$1,495,000 (-11.8%)

Tax abatement until 2038
242 Broome Street, #10D
$2,625,000 (-6.1%)

Tax abatement until 2040
One West End, #21F
$6,499,000 (-3%)

Tax abatement until 2040
One Manhattan Square, #48G
$2,455,000

Tax abatement expiring in 2042
Navy Green, #11E
$765,000

Tax abatement expiring in 2042
Circa Central Park, #PH10A
$5,995,000

Tax abatement in place until 2045
One Morningside Park, #9A
$1,650,000

Tax abatement expiring in 2045
Brooklyn Point, #46H
$2,278,355

This is your member's center

In this article:

A history of 421a

Other Types of Tax Abatements:

Tax abatement expiring 2030 191 Spencer Street, #2B$925,000 (+2.9%)

J51 tax abatement expiring tax year 2030/31 The 153 Chauncey, #2B$585,000 (-2.3%)

Tax abatement expiring June 30, 2032 Gateway Tower, #10N$1,250,000 (-3.5%)

Select which properties are of interest to you:

Tax abatement expiring 2032 51 Jay Street, #1A$1,895,000

Tax abatement expiring in 2032 The Sutton, #10C$2,400,000

Tax abatement expiring in 2032 Dutch LIC, #208$1,375,000

Tax abatement active until 2033 Oosten, #L53$3,125,000

Tax abatement until 2037 70 Charlton, #7G$1,495,000 (-11.8%)

Tax abatement until 2038 242 Broome Street, #10D$2,625,000 (-6.1%)

Tax abatement until 2040 One West End, #21F$6,499,000 (-3%)

Tax abatement until 2040 One Manhattan Square, #48G$2,455,000

Tax abatement expiring in 2042 Navy Green, #11E$765,000

Tax abatement expiring in 2042 Circa Central Park, #PH10A$5,995,000

Tax abatement in place until 2045 One Morningside Park, #9A$1,650,000

Tax abatement expiring in 2045 Brooklyn Point, #46H$2,278,355

Select which properties are of interest to you:

Listings in this article

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Company

Tax abatement expiring 2030
191 Spencer Street, #2B
$925,000 (+2.9%)

J51 tax abatement expiring tax year 2030/31
The 153 Chauncey, #2B
$585,000 (-2.3%)

Tax abatement expiring June 30, 2032
Gateway Tower, #10N
$1,250,000 (-3.5%)

Tax abatement expiring 2032
51 Jay Street, #1A
$1,895,000

Tax abatement expiring in 2032
The Sutton, #10C
$2,400,000

Tax abatement expiring in 2032
Dutch LIC, #208
$1,375,000

Tax abatement active until 2033
Oosten, #L53
$3,125,000

Tax abatement until 2037
70 Charlton, #7G
$1,495,000 (-11.8%)

Tax abatement until 2038
242 Broome Street, #10D
$2,625,000 (-6.1%)

Tax abatement until 2040
One West End, #21F
$6,499,000 (-3%)

Tax abatement until 2040
One Manhattan Square, #48G
$2,455,000

Tax abatement expiring in 2042
Navy Green, #11E
$765,000

Tax abatement expiring in 2042
Circa Central Park, #PH10A
$5,995,000

Tax abatement in place until 2045
One Morningside Park, #9A
$1,650,000

Tax abatement expiring in 2045
Brooklyn Point, #46H
$2,278,355