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In addition to Central Park panoramas and ultra-luxe amenities, buyers at the new One57 condo in Midtown Manhattan could be getting another perk—tax breaks intended to benefit low-income housing.According to CNBC’s Robert Frank, the building, which is being developed by Extell, is seeking millions of dollars in tax benefits under a New York City program that gives tax breaks of up to 80 per cent for the first two years in exchange for allocating some units for low-income housing.
Those discounts would be passed on to buyers: the new owner of One57’s $90 million penthouse for example, would pay around $20,000 a year in real estate taxes instead of the standard $230,000-a-year rate, Frank writes.
One57’s developers could take advantage of a well-known loophole that allows them to build the low-income units in another location—likely in an outer borough instead of inside the famously expensive highrise.
Now city officials say they are taking another look at One57’s applications under the program, called 421-a, and asking the developer for more information, according to CNBC.
Extell founder Gary Barnett responded to CNBC, saying that the tax benefits would mostly benefit the company and not buyers, since he could charge more for units.
“We’ve had some benefit because of the abatements, but the real benefits have been to affordable housing,” Barnett told CNBC’s Frank. “We’ve done exactly what the program was intended to do, which is to create affordable housing.”
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