- Glossary
- /421-a
NYC rental glossary
421-a
A NYC tax exemption for new residential construction that requires the developer to rent-stabilize units for the benefit period.
421-a is a New York City tax exemption designed to spur new residential construction by abating property taxes on newly built multifamily buildings for a fixed term. As a condition, units in a 421-a building are subject to rent stabilization for the duration of the benefit, and newer versions of the program also require a share of permanently affordable units.
The program has expired and been replaced/renamed more than once (its most recent successor carries a different name), but enormous numbers of units citywide still sit under active 421-a benefits — which means they are stabilized even though the building is brand new and would otherwise be free-market.
As with J-51, the practical lesson is that a tax benefit can be the reason a glossy new unit is rent-stabilized. Check the benefit before assuming the regulatory status.
Related terms
- J-51A NYC tax-exemption-and-abatement program for building rehabilitation that historically brought units into rent stabilization.
- Rent StabilizationA NYC regulatory system that caps annual rent increases and grants tenants a near-automatic right to renew their lease.
- Legal Regulated RentThe maximum lawful rent for a rent-regulated unit, registered with the state and built up from a base plus permitted increases.
- Multiple DwellingA residence with three or more independent units — the threshold that triggers many NYC building-code and registration duties.
This definition is general information about a New York City rental or rent-regulation concept, not legal advice. The rules change and often turn on facts specific to a building, unit, and tenancy — confirm the current rule and consult a qualified attorney before acting on any individual matter.