The New York City Department of Housing Preservation and Development (HPD) has adopted new rules to implement both the “Affordable Housing from Commercial Conversions Tax Incentive Benefits Program,” established under Section 467-m of the New York State Real Property Tax Law (RPTL), and the “Affordable Neighborhoods for New Yorkers Tax Incentive Benefits Program,” established under Section 485-x of the RPTL.
The RPTL 485-x program was passed by New York State legislature in April 2024 as a replacement for the RPTL 421-a (16) program to encourage the construction of new residential housing, including affordable housing. HPD’s recently adopted rules for the 485-x program become effective on January 15, 2025. HPD can begin accepting applications for the 485-x program after the rules become effective.
The 467-m program, passed simultaneously with the 485-x program, provides tax incentives the conversion of certain non-residential buildings into residential buildings with affordable housing. HPD’s adopted rules for the 467-m program also become effective on January 15, 2025.
Relatedly, HPD has proposed amendments to existing rules governing prevailing wages for building service workers and the procedures governing revocation of tax benefits to incorporate the requirements of 485-x and 467-m programs.
Interested parties can comment on the proposed rules by:
- Submission of comments through the NYC rules Web site at https://rules.cityofnewyork.us;
- By email to rules@hpd.nyc.gov; or
- By regular mail to John Leonard, TIP Executive Director, 100 Gold Street, Room 8D-09, New York, New York 10038.
All written comments must be submitted before January 10, 2025. Public hearings will also be held on the proposed rules on January 10, 2025. The public hearings will be available exclusively online. Interested parties may give oral comments on the proposed rules, but those interested in speaking should sign up to do so in advance by January 9, 2025.
Contact Us
For more information, or with any questions regarding the 485-x and 467-m programs, please consult your attorney of record or reach out to our team here.
Written by: Anthony Morreale, Partner, Administrative Law Department