Key facts
- Developers are registering projects with 99 units to avoid higher wage and affordable housing mandates.
- The 485-x property tax break requires 25% affordable units and higher wages for projects of 100+ units, versus 20% for smaller ones.
- Critics and labor unions view the 99-unit strategy as a loophole that reduces affordable housing contributions.
- Developers claim the wage requirements make larger projects financially unfeasible.
New York developers are registering new rental housing projects with exactly 99 units to avoid triggering higher wage and affordable housing requirements under the state's 485-x property tax break program. The program mandates a 25% affordable housing share and higher hourly wages for projects of 100 or more units, compared to 20% for smaller buildings. Data shows a significant trend of developers opting for 99-unit constructions, even in clusters of attached buildings, to circumvent these mandates. Critics, including labor unions, argue this practice reduces the number of affordable units and 'rips off taxpayers.' Developers, however, contend that the wage requirements make projects exceeding 100 units financially unworkable.