The U.S. Census Bureau recently released its report on building permits issued in the city. According to Crain’s New York Business, only 7,439 permits were issued so far this year. The agency predicts that, at this pace, only 13,000 permits will be given out to developers by the end of the year — far less than the 56,000 permits issued in 2015.
Last year’s building permit activity was the highest since 1962. However, much of the increase can be attributed to developers seeking to take advantage of the 421-a tax break before it expired, with many assuming it would not be renewed.
New York City provided these tax breaks to the developers on the conditions that new construction of multiple dwellings were on property that was either vacant, underused or had a non-conforming use three years before the start of the project, and at least 20% of the newly constructed units were set aside for affordable housing. Governor Cuomo is looking to extend the 421-a tax break by requiring builders to pay construction workers employed at their worksites a “living wage,” but nothing has been finalized yet.
Of all the five boroughs, Bronx had the most permits issued so far this year with 2,335, followed by Brooklyn (1,913), Queens (1,433), Manhattan (1,094), and Staten Island (664).
The attorneys at Georgaklis & Mallas PLLC are experienced in various areas of real estate-related transactions, handling both commercial and residential transactions on behalf of lending institutions, real estate investment and management companies, as well as business and individual clients. Call (718) 238-2400 for more information.