Save New York’s Rental Housing: NYAA Proposes Tax Credit For Unsubsidized Affordable Housing In Need Of A Lifeline

Proposal would provide tax relief for rent-stabilized buildings that is in line with the current 485x program

(New York, NY) – For more than 40 years, New York has failed to reform its inequitable property tax system that unfairly targets rental buildings and burdens renter households. The highest court in the State agrees. To preserve this affordable housing stock, the New York Apartment Association (NYAA) is calling for tax relief for unsubsidized, affordable rent-stabilized buildings this budget season.

Last year, the NYS Court of Appeals issued a decision in the Tax Equity Now New York (TENNY) case, finding that the existing property tax system is being applied in a discriminatory fashion against certain types of rental properties. Property tax assessments released this month show these buildings continue to see property tax increases, even as the buildings’ market values decline.

“Housing can either be affordable with tax relief or market priced and taxed accordingly,” said Jay Martin, the Senior Vice President of NYAA. “Right now, the government is forcing lower rents while simultaneously overtaxing the same buildings. They are trying to have their cake and eat it too. That’s got to stop.

“Older rent-stabilized buildings are in deep distress and the renters who rely on this housing stock are the ones in jeopardy. If the Governor and Legislature are serious about keeping housing affordable they must tackle its biggest cost: government-controlled taxes.”

Under NYAA’s proposal, rent-stabilized buildings with a minimum of 50% of their rents at 80% of the Area Median Income, adjusted for household size, would be eligible for property tax relief equal to what buildings receive under the new 485x law. Buildings with more affordable units would see more relief, while buildings with fewer affordable units are not eligible for the program.

NYAA estimates that the majority of pre-1974 buildings outside the core of Manhattan would be eligible for some tax relief under this program. This category of the housing stock currently provides the largest number of unsubsidized affordable housing units in New York City. The tax proposal parameters are intended to carve out rent-stabilized buildings in the core of Manhattan that predominantly rent to wealthier tenants.

“Tax policy is a statement about priorities,” Martin said. “New York’s current property tax policy says a lot about where its housing priorities are: full tax relief for homeowners but nothing for providing deeply affordable rent-stabilized housing in older rent-stabilized buildings. Elected officials say they want fair tax policy, but when it comes to housing they are overtaxing low-income renters so others can benefit.”

###

The New York Apartment Association (NYAA) is a 501(c)(6) that represents a diverse coalition of apartment building owners and managers who provide the majority of affordable multifamily housing in the state of New York. To put it simply, we are Housing New York. The official NYAA website is HousingNY.Org. @HousingNY on X; @HousingNY on Instagram; @HousingNY on Youtube, and @HousingNY on TikTok.