Hochul’s wrongheaded plan to replace a vital affordable-housing tool
Hochul's wrongheaded plan to replace a vital affordable-housing tool New York Post
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Report on Affordable Housing Tax Break Replacement
Introduction
Gov. Kathy Hochul is advocating for a replacement of a long-standing affordable housing tax break in order to address the high property taxes in the city and promote development. However, her approach to achieving this goal is questionable.
The Issue
The Legislature has refused to replace the expired 421-a tax break, prompting the governor to propose an executive order as an alternative solution. This order focuses on housing in Brooklyn’s Gowanus rezoning neighborhood, where the state would temporarily take control of development sites and lease them back to developers. However, developers would be required to make payments-in-lieu-of-taxes (PILOTs) that are lower than their property tax obligations.
Critical Analysis
While the governor’s approach is creative, it raises concerns about defying the Legislature’s decision not to provide a tax break. President Joe Biden has also faced criticism for bypassing lawmakers on various issues. While Hochul’s goal of implementing a new 421-a tax break is commendable, it does not justify circumventing the legislative process.
In addition, Hochul’s plan includes a requirement for developers to hire minority- and women-owned businesses in order to be eligible for the tax break. While this may be seen as a positive step towards promoting diversity, it could potentially discourage developers from choosing the best firms based on price and quality.
Importance of 421-a Tax Break
The 421-a tax break has been crucial for builders who struggle to make a profit due to the city’s high property taxes. It has contributed to the addition of 75% of the affordable housing units in the city over the past 20 years. Without a replacement, over 3,500 apartments in the Gowanus rezoning area alone are at risk of not being built.
Consequences of Failure to Replace 421-a
The failure to replace the 421-a tax break will result in reduced rental-housing construction, particularly affordable housing, and a decrease in property-tax revenue for the Adams administration.
Conclusion
A strong and democratic leader should focus on convincing opponents rather than dictating orders. Gov. Hochul still has room for improvement in this regard.
SDGs, Targets, and Indicators Analysis
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 1: No Poverty – The article discusses the need for affordable housing and the potential risk of not building apartments in the Gowanus rezoning area.
- SDG 8: Decent Work and Economic Growth – The article mentions the importance of the 421-a tax break for builders to make a profit and stimulate development.
- SDG 10: Reduced Inequalities – The article mentions that Gov. Hochul’s plan requires developers to hire minority- and women-owned businesses to be eligible for the tax break.
- SDG 11: Sustainable Cities and Communities – The article discusses the impact of the expired 421-a tax break on rental-housing construction and affordable housing in New York City.
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 1.4: By 2030, ensure that all men and women, in particular, the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property.
- SDG 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services.
- SDG 10.2: By 2030, empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion, or economic or other status.
- SDG 11.1: By 2030, ensure access for all to adequate, safe, and affordable housing and basic services and upgrade slums.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Indicator 1.4.2: Proportion of total adult population with secure tenure rights to land, with legally recognized documentation and who perceive their rights to land as secure, by sex and by type of tenure.
- Indicator 8.3.1: Proportion of informal employment in non-agriculture employment, by sex.
- Indicator 10.2.1: Proportion of people living below 50 percent of median income, by sex, age, and persons with disabilities.
- Indicator 11.1.1: Proportion of urban population living in slums, informal settlements, or inadequate housing.
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | Target 1.4: By 2030, ensure that all men and women, in particular, the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property. | Indicator 1.4.2: Proportion of total adult population with secure tenure rights to land, with legally recognized documentation and who perceive their rights to land as secure, by sex and by type of tenure. |
| SDG 8: Decent Work and Economic Growth | Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services. | Indicator 8.3.1: Proportion of informal employment in non-agriculture employment, by sex. |
| SDG 10: Reduced Inequalities | Target 10.2: By 2030, empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion, or economic or other status. | Indicator 10.2.1: Proportion of people living below 50 percent of median income, by sex, age, and persons with disabilities. |
| SDG 11: Sustainable Cities and Communities | Target 11.1: By 2030, ensure access for all to adequate, safe, and affordable housing and basic services and upgrade slums. | Indicator 11.1.1: Proportion of urban population living in slums, informal settlements, or inadequate housing. |
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Source: nypost.com
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