420-c - HPD

Housing Preservation & Development


Tax Credits and Incentives

420-c


420-c

The 420-c tax incentive is a complete or partial tax exemption for low-income housing development with tax credits

420-c Tax Incentive

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Eligible Projects

Eligible projects include projects which are:

Owned or leased for at least 30 years by a corporation, LP, or LLC, of which at least 50% of the controlling interest is held by a tax exempt 501(c)(3) or (4) charitable organization whose purposes include low-income housing, or a wholly-owned subsidiary of such charitable organization

Subject to an HPD approved regulatory agreement which requires use as low-income housing

Currently or formerly financed with federal low-income housing tax credits

Benefits Granted

Complete or partial exemption from real estate taxes for the term of the regulatory agreement up to a maximum of 60 years. HPD may impose a payment in lieu of taxes (PILOT) as a condition for the exemption. There is no exemption for commercial space.

Procedural Requirements

The developer applies to Tax Incentive Programs (TIP) and receives a Certificate of Eligibility. The Department of Finance implements the benefits.

Notices

HPD adopts amendments to rules relating to revocation of tax benefits. The rule amendment reflects what has traditionally been HPD’s practice by clarifying HPD’s ability to revoke tax benefits granted before all eligibility criteria are fulfilled when those criteria are not fulfilled in a timely manner. The rule amendment also clarifies the wording of §39-05 to unambiguously reflect HPD’s policy of delivering notices by mail to both the fee owner and, where relevant, the mortgagee, in addition to the notices delivered by mail to the real property tax bill addressee and both the agent and the owner identified in the multiple dwelling registration. Finally, the proposed rule amendment adds “Noticed Property” as a defined term, in order to put §39-05 in plainer English and thus make it easier to read and understand.

Notice of Adoption of Revocation Rule Amendments
Effective Date: April 14, 2017

420-c Legislation and Overview FAQ

How to Apply

To submit an application online (recommended), visit the 420-c Online Application.

To submit an application on paper, complete the 420-c Paper Application. For modifications to existing paper applications submitted before July 1, 2019, use the previous form. Submit the completed application to:

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

There is a $100 application fee, and a processing fee of $60 per unit (for SRO Class B units) and $80 per unit (for all other Class A units).

Contact

Contact ArtXI_420c_UDAAP@hpd.nyc.gov.