We all know that New York City has earned a reputation of being one of the most expensive housing markets. It’s not uncommon to see New Yorkers shelling out up to 30% of their income for housing.
But few actually know that New York City has been helping condo and coop owners address this money pressure through the NYC Condo/ Coop Tax Abatement Extensions, which costs New York City about $500 million annually in tax revenue.
The tax credits ranging from 17.5% – 25% for 2012 must be renewed every three years. The New York Legislature left many worried that the bill wouldn’t be passed due to the costs incurred from Hurricane Sandy. However, it has been confirmed that the New York Legislature recently passed an Omnibus Housing bill that renews the coop and condo tax abatement for another three years, according to The Huffington Post.
These tax credits will have a positive impact on the recovery of the New York City housing market. The Omnibus Bill has removed some of the roadblocks that would have resulted in the completion of stalled housing projects in Midtown and Downtown Manhattan. The restoration and flexibility in the completion of these construction projects will now result in new residential projects being developed in these high density areas.
Ron Hershco, a developer that specializes in residential properties in New York believes that the passing of this bill will help the New York housing marketing immensely. The impact of Hurricane Sandy was devastating, but the fact that the New York Legislature has passed the bill for the next three years means that it is committed to helping New York residents get back on their feet.