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Yonkers City Council President Chuck Lesnick and Councilmember Christopher Johnson (D-1st District) introduced the law to allow Yonkers to opt-in to the program "with the hope of incentivizing developers to invest in the renovations of older buildings and the construction of new affordable housing units in Yonkers," according to a press release.
The council representatives recently held a press conference at 66 Main St. in Yonkers to display "a beautiful energy efficient building built with 80-20 tax credits to provide 20 percent affordable housing alongside 80 percent of luxury units at the market rate, to discuss the proposed law," according to the release.
The recently introduced law is modeled on the 421(a) property tax exemption program in New York City that provides tax incentives for 10 to 15 years, according to the release. If approved, the Yonkers 421(m) program "could allow developers up to 100 percent in tax exemptions for up to 12 years following construction and gradually reduce the exemption from 80 percent during years 13 to 14 and to 20 percent in years 19 and 20," according to the release.
"Another benefit of the proposed local opt-in is that it raises the standards of percentage of affordable housing above what is currently being discussed as mandatory standards in Mayor Mike Spano's proposed affordable housing ordinance but makes it optional for developers who are willing to provide a higher percentage of affordable housing," representatives said in the release. "Another benefit of the proposed local law is that it would allow improved properties to contain certain levels of affordable housing."
Lesnick said in the release that it was important to provide incentives to developers.
Eric Wolf, a principal of Metro Partners LLC, the group that owns 66 Main St. in Yonkers, agreed with the idea of needing support from the government.
“We support government financial incentives to encourage development of affordable housing," Wolf said in the release.
Eligibility requirements for the exemption are set by the state and subject to local policy decisions, according to the release. Some guidelines include construction or substantial rehabilitation needing to take place on vacant or under-utilized land, construction or substantial rehabilitation to commence on or after the effective date but no later than June 15, 2015, according to the release.
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