Unlocking Opportunities: The ANNY Program in NYC for Multifamily Investors
Part U of the Budget Legislation introduces the Affordable Neighborhoods for New Yorkers Tax Incentive (ANNY) program, marking a significant shift in property tax exemptions for eligible new construction projects. As NYC multifamily investors, understanding the nuances of this program is crucial for maximizing investment potential.
Key Features of the ANNY Program
Property Tax Exemption
The ANNY program offers a 10, 20, 35, or 40-year property tax exemption, providing significant financial incentives for eligible new construction projects. This exemption serves as a replacement for the expired 421-a program, offering long-term benefits for participating investors.
Eligibility Criteria
To qualify for the ANNY program, residential new multiple dwellings and eligible conversions must have a Commencement Date on or after June 16, 2022, and on or before June 15, 2034. This timeframe allows investors to plan and execute projects strategically to benefit from the program’s incentives.
Similarities to 421-a Program
The ANNY program shares similarities with the previous 421-a program, including provisions such as exemption based on the percentage of increase in assessed value (AV) above the prior AV. Additionally, prevailing wage requirements for building service employees are maintained, ensuring fair compensation for workers involved in construction projects.
Notable Differences
While the ANNY program retains some aspects of the 421-a program, there are notable differences that investors must be aware of. One significant difference is the extension of affordability requirements and rent stabilization in perpetuity for affordable housing units. This ensures long-term affordability and stability for tenants, contributing to the overall goal of creating sustainable and inclusive communities.
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