The real property tax exemption created by Section 421-a of the Real Property Law (421-a) was enacted in the 1970's. It was designed to encourage the creation of multi-unit dwellings at a time when New York City's residential housing market was in a crisis. The residential housing shortage has persisted to the present and has skewed the market for housing to the detriment of moderate/middle income tenants. By the terms of its statute, the 421-a Tax Exemption Program will expire in December 2007.

The purpose of this hearing is to examine the need for the 421-a program. The hearing also seeks public input on viable proposals to enhance the 421-a program in such a way as to address the affordable housing crisis. In addition, the hearing gives the public a forum in which to comment on Assembly Bill 4408.

More information, including a registration form for community members interested in testifying, is available at http://assembly.state.ny.us/comm/Housing/20070216/.