Plan To Extended Tax Break For Developers Draws Fire
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The city is considering a plan to get more construction workers back on the job, but the proposal is generating controversy among affordable housing advocates. NY1's Rebecca Spitz filed the following report.Scattered across the city are hundreds of construction projects that began when times were good -- kick started by a city promise of tax breaks for 25 years. The projects had to be completed within three years to qualify. But those three years are just about up and many of those projects have gone nowhere since the housing market tanked. Concerned that developers may just walk away for good if they lose the tax breaks, the city is considering extending them for another three years.
"I think the choice is between trying to generate jobs today in the construction industry that has high unemployment and leaving sites lay fallow for years with an uncertain future," said Department of Housing Preservation and Development Commissioner Rafael Cestero.
The Real Estate Board of New York has gotten behind the extension but there are those who say it would be a big mistake. Under the original plan, developers did not have to set aside any units for affordable housing. That requirement was added later and critics say if the developers want the break extended, they should meet the new rules.
"This proposal takes us away from creating affordable housing and makes it even more of a giveaway to some of the richest people in the world because it says to a certain class of owners, we're going to remove a requirement to develop affordable housing that you otherwise would've had," said Tom Waters of the Community Service Society.
Meanwhile, others say these are the wrong tax incentives at the wrong time.
"We cannot afford to give hundreds of millions of dollars in tax breaks to luxury housing developers at a time when we're facing massive budget deficits, when we've just cut the capital budget by 20 percent," said City Councilman Brad Lander.
HPD says none of the projects was ever conceived with affordable housing in mind and that critics are missing the point.
"This will allow projects that were stalled during the financial collapse to restart quickly and create jobs," Cestero said.
Commissioner Cestero says the agency will assess all of the input it has gotten on this issue and will come up with a decision on the proposed adjustment in 30 days.