Expired State Tax Breaks Deliver $3k 'Affordable' Crown Heights Apts

CROWN HEIGHTS, BROOKLYN — A controversial tax break for developers has expired, but the "affordable" units created by it are still coming online.

One of those buildings aided by the generous tax exemption, known as 421a, has just entered the housing lottery in Crown Heights, where three of the 10 units at 627 Franklin Ave. are now available for over $3,000 a month.

The two-bedroom units are reserved for households with incomes between $111,498 to $187,330, for an "affordable" monthly rent of $3,252.

Just down the street, a sprawling three-bedroom duplex on Bergen Street with a private backyard has been on the market for 42 days at a monthly rent of under $3,000.

The expired tax abatement program was meant to encourage hosing development in a city stymied by an apartment shortage, and gave developers massive tax breaks in exchange for utilizing several housing options which place affordable apartments alongside market rate units.

Most developments, like at 627 Franklin Ave., opted for the least affordable option of 130% of the area median income, which pegs rents for households making no less than around $111,000.

According to a Comptroller report issued last year, 421a costs the city $1.77 billion per year in abated taxes.

The Furman Center found that over the past decade, the program was used in 68% of new developments in New York City, just over 117,000 housing units total.

While 421a expired last year, Governor Hochul and others are still seeking a replacement after last year's budget failed to produce a replacement.

You can enter the lottery for 627 Franklin Ave. here.