Quote:
Originally Posted by UpsonDowns
JColtrane -
Gee, developers get HUGE tax breaks to build middle and low-income housing. They get to build taller, bigger and get all sorts of concessions. The OP is not mooching off of taxpayers.
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First, there is NO tax break which can allow for $600 1 bdrm apts in this city.
Second, a little homework would aid you in comprehending the circumstance.
For example, developers can receive concessions in order to build taller and/or bigger, in order to receive the concessions, they either have to build with 'set backs' whi@h allows for greater air and light to the street; or, they build with the building line set back significantly from the legal building line, again allowing for more light and air, as well as open space at the street level.
For such concessions and other similar, builders are generally allowed to build taller.
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Regarding tax breaks,
Builders DO NOT receive HUGE tax breaks!!!
What some receive are relative tax concessions which, if the builder is efficient, can virtually guarantee a profit.
Of course, this relates to so called 'affordable housing', and virtually all such 'for profit' developers
specialize in this area of the market.
It is a give and take proposition. In the average case, an affordable housing developer exchanges *maximizing* profit for a lessor *guaranteed* profit.
Such developers are granted one or more, or a combination of tax concession, land concessions, direct grants, etcetera, in order to reach a certain cost point which makes the project profitable for the developer and affordable for tenant or buyer.
NOW, here's the part that you appear to be TOTALLY confused and aware, frankly ignorant!
ALL tax concessions, land concessions (where government provides virtually free land to a developer), direct grants, etc. come at TAX PAYER expense! It is taxes which are either NOT paid by the developer and/or are tax revenue paid directly to the developer.
Tax "breaks" are NOT free!! They are direct subsidies to the occupants of subsidized housing!!
Also, please note, Donald Trump doesn't build subsidized housing, neither does the likes of Larry Silverstein. Affordable housing developers are generally fourth or fifth tier developers, and while none are poor, none are billionaires either!
Lastly, at least 50% of affordable housing is build by 'not for profit' developers, foundations and charitable organizations who forego profit in order to reach cost points to create affordable rents and prices. These organizations ALL receive Grants and other concessions from government and charities.
So again, occupants are being subsidized!
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The reality in this city is that there are NO $600 1 bdrm apts for rent, anywhere!!! which are not subsidized.
So please dispense with the notion that tax breaks are HUGE, and some sort of bonanza for developers. It simply is not the case.
If it were you would see subsidized tax break housing going up on Park Avenue next to the Waldorf, but that is not happening.
If tax breaks were so HUGE and incentive, then NYC's housing shortage problems w/b solved, and there w/b affordable housing being built on every available scrap of land cause the profit w/b HUGE, and everyone w/h a $600 1 bdrm apt.
Alas, that is not the case....