NYC Rules on Housing Tax Breaks Face Developers’ Skepticism

New York City’s proposed rules for new tax breaks to spur office conversions and multifamily housing are already getting pushback from the real estate industry and tax specialists, who say development may suffer from the provisions.

The proposals largely reflect an earlier version of the city’s multifamily tax incentive, called 421-a, but have a few key differences that are rankling developers. The biggest point of contention is a lowered income threshold for affordable units created under the two benefits—77% of the area medium income, down from the 80% AMI standard set by the state ...