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If you’re thinking of buying a New York City condo but concerned about the cost, one way to get a deal is to look for a condo with a 421-a tax abatement—but there are not many available these days.
The goal of the 421-a tax abatement program, which launched in 1971, is to entice developers to build more affordable housing in the city by giving them a break on taxes. The tax abatement, which usually ranges from 10 to 25 years, is passed on to buyers as an incentive, which means you don’t have to pay property taxes for the first couple of years (depending on the length of the abatement) and then you pay reduced property taxes for the remainder of the abatement.
In 2018, the state legislature approved a new 421-a tax abatement program, which ultimately eliminated the break for new condos, except for those who were approved in time. Many of the condos developments with long-term abatements, like 15 Hudson Yards, are luxury properties. However, you can find more moderately priced condos that have a tax abatement coming to an end, so you can still take advantage of reduced property taxes for a few years.
To make it a little easier, here are five condos with a 421-a tax abatement, including a Long Island City three bedroom with a 15-year abatement and a BedStuy one bedroom with an abatement through 2036.
249 East 118th St., #3B, East Harlem
This one bedroom, one bath is asking $575,000 and has a 421-a tax abatement through 2033. Apartment #3B features maple hardwood floors, high ceilings, floor-to-ceiling windows, a private balcony, stainless steel appliances, and central air conditioning. Amenities include a full-time doorman, live-in super, package room, courtyard, and a roof deck. Thomas Jefferson Park and eateries like Taqueria El Barrio are nearby.
192 Spencer St., #4D, BedStuy
This one bedroom, one bath is asking $600,000 and has a 421-a tax abatement through 2036. The condo has wide-plank hardwood floors, oversized windows, stainless steel appliances, an in-unit Bosch washer/dryer, and a Nest thermostat. Amenities include a furnished roof deck, fitness center, and parking and storage units are available. Marcy Playground and eateries like Baron’s are nearby.
14-11 31st Ave., #3A, Astoria
This one bedroom, one bath is asking $727,899 and has a 15-year 421-a tax abatement. Apartment #3A has hardwood floors, floor-to-ceiling windows, recessed lighting, large closets, stainless steel KitchenAid appliances, a breakfast bar, an in-unit GE washer/dryer, and a private balcony. Amenities include a package room, garage parking, storage units, and a roof deck. Socrates Sculpture Park and eateries like Fresco’s Cantina are nearby.
1333 Jackson Ave., #3G, Long Island City
This three bedroom, two bath is asking $1,425,000 and has a 15-year 421-a tax abatement. The condo features hardwood floors, oversized windows, a private balcony, stainless steel appliances, an in-unit Bosch washer/dryer, and the option to purchase a deeded private garage parking spot. Amenities include a doorman, bike storage, lounge, fitness center, and a roof deck with cabanas. MoMA PS1 and eateries like The Creek & The Cave are nearby.
252 South St., #18H, Two Bridges
This two bedroom, two bath is asking $2,087,000 and has a 421-a tax abatement through 2039. The condo has custom finishes, floor-to-ceiling windows, hardwood oak floors, recessed lighting, an open kitchen with Miele stainless steel appliances, and an in-unit washer/dryer. Amenities include a health club with a pool and sauna, a basketball court, movie theater, bike storage, playroom, and lots of outdoor space.
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