Defenders of the program -- including developers and
What's apparent is that the program -- created by state legislation 16 years ago -- is itself in need of a few repairs. The law needs stronger language on what qualifies for a tax break, to eliminate some gaping loopholes, and mechanisms for firmer oversight procedures, to make sure that the projects granted the tax breaks are living up to their obligations.
Known as "485-a" for the section of the state tax code that created it, the program provides qualifying projects with a tax exemption for 12 years after the developer completes the work.
In
Assemblyman
The 485-a program was created in 2002 to mimic a similar program in
In
In another
Rep.
"It defeats the purpose," Higgins said. "The idea is to redevelop these older buildings, not demolish them."
In
Ryan says the city should withdraw from the program, calling it "a way for developers to shift their cost of doing business onto the taxpayers of the
Benderson Vice President
"Ours was the first private-sector investment in the entire
A 2015 study by Higgins found the 485-a tax incentive resulted in
Ryan, the assemblyman, disagrees with the developers' claims that their projects would not get built without 485-a incentives. Ryan points out that developers have to plan a building project, get their financing in place, and then do the construction before applying for the tax exemption, which may or may not get approved.
It's unlikely that the city will heed Ryan's call and withdraw from the 485-a program, but clearly the process could use more oversight for which projects get approved.
Higgins, speaking to The News in August, called the overall program a "resounding success," but said that "Certainly, things could be tightened, and I would support legislative or regulatory fixes to that end," Higgins said.
When one modest apartment in a
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