New York City lets late 421-a rental projects switch options to reach 2031 deadline
A city rule lets Option C and G projects that missed the June 15, 2026 completion date change affordability options and remain eligible for the exemption, if they filed a timely letter of intent.
Owners of New York City rental projects that chose the 421-a tax break options tied to a June 15, 2026 completion deadline now have a way to keep the exemption if construction ran late. A rule of the New York City Department of Housing Preservation and Development (“HPD”), which took effect on September 19, 2026, adds a new paragraph (4) to N.Y.C. Rules, tit. 28, § 51-02(b), letting HPD approve a change of affordability option in an already approved “Workbook” for projects under N.Y. Real Prop. Tax Law § 421-a(16) (the “RPTL”), the Affordable New York Housing Program.
N.Y.C. Rules, tit. 28, § 51-02(b)(4) (eff. Sept. 19, 2026); N.Y. Real Prop. Tax Law § 421-a(16)(a)(xxviii)