420-a - HPD

Housing Preservation & Development


Tax Credits and Incentives

420-a


420-a

The 420-a Tax Incentive is a complete tax exemption for HDFC-owned housing with social services.

420-a Tax Incentive

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Eligible Projects

Eligible projects include projects which are:

Owned or controlled by a non-profit Housing Development Fund Corporation (HDFC)

Assisted by the City or State for the construction, rehabilitation, or acquisition of the project

Subject to an agreement which requires use as low-income housing, reserves a portion of the project for the formerly homeless and people with special needs, and requires that supportive social services for residents be provided

Benefits Granted

Complete exemption from real estate taxes while the eligibility requirements remain satisfied.

Procedural Requirements

The developer requests that HPD certifies eligibility to the Department of Finance (DOF). After HPD does so, DOF makes a final eligibility determination and implements the benefits. The owner must submit two copies each of the Certificate of Incorporation, the deed, the mortgage agreement or other evidence of a grant, loan or other assistance to the project from the City or State, and the regulatory agreement(s) or other written agreement(s) that govern property management.

How to Apply

*Important COVID-19 Update*
In light of the current COVID-19 outbreak, HPD is authorizing alternative means of application submission and fee payment. See the About Tax Incentives webpage for more information. Contact 420a_exemption@hpd.nyc.gov for more information.

Please see the 420-a Application Instructions and Sample Owner Affidavit. Call 212-863-6603 for more information.

Submit completed application to:

420-a Program
100 Gold Street, Room 9-Z3
New York, NY 10038