The NYS Senate and Assembly passed their one house budget resolutions, respectively. The resolutions are not set in stone, rather are used during negotiations between the three chambers for the state’s final budget. The Senate, governed by a majority of Republicans as well as an Independent Democratic Coalition, increased eligibility for condos to receive the 421-a property tax exemption, termed “Affordable New York” by Governor Cuomo. It will increase the ceiling on condos that could receive the tax break over a period of 20 years from an assessed value of $65,000 to $85,000. The Senate also proposed increasing the number of developments that qualify from ones with a minimum of six units and a maximum of 35 units to ones with four to 80 units. Brooklyn State Senators Simcha Felder and Marty Golden have pushed for increased condo eligibility in the outer boroughs.
The change in 421-a, as well as the legislature’s rejection of Governor Cuomo’s budget proposal for reauthorization of design-build contracting, is sure to set off intense negotiations between the three chambers with a self-imposed budget deadline of April 1. Cuomo and de Blasio have publicly been at odds over the inclusion of a wage requirement for construction workers in a finalized 421-a deal, as well as the inclusion of condos. The latter two, wage requirement and condo inclusion, are to be two of the most contentious development issues included in this year’s budget negotiations. The IDC has stated they are not concerned with the April 1 deadline, and would rather negotiate for issues of importance to them. Governor Cuomo and the legislature have delivered an on-time budget every year during his tenure as Governor. Any efforts by either chamber, or a faction within a chamber, to derail an on-time budget, is sure to be met with intense negotiation by the Governor.