Quote:
Originally Posted by roseba
OK I exaggerated when I said the word Pennies. But having a 20 year tax abatement is a really, really good deal.
On the other, how do you explain property that remains vacant for literally years on streets like Bleeker Street? Do you really believe that NO ONE wants to rent a store there?
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It's a tax exemption, not an abatement they get under the program and the length varies depending on the area. Again, I agree with you that it's really a good deal for the developers/sponsors and the recent update to the program should have been fairer. However, this is NY and the real estate industry has the NYS lawmakers under their thumb.
The program was flawed from the beginning but it did work well to spur housing in NY.
Fun fact:Trump Tower
isstill receiving a tax exemption under the program. NYS tried to block the Trump Tower from taking advantage of the program because 5th Avenue wasn't a depressed area then or now. Trump sued and won.
I've been hearing about these vacant properties but I think these owners are speculating or biding their time to buy up adjacent properties. I do not know of any tax benefits, whether from the state or feds, that would provide tax deductions to unused or underutilized properties.
Some people (like pierrepont) advocates that the govt should get out of the housing market in NYC but no one knows what is the solution to the housing crisis here. NYU Furman Center has some nice tools and research on this issue.
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