Category: Tax abatement

What is efficiency? said jesting Pilate: Part 3, The judgment

8 February, 2017 (08:00) | Affordability, Apartments, Condominiums, Development, Housing, Incentives, New York City, Real estate taxes, Section 421-a, Speculation, Subsidy, Tax abatement, US News |

  By: David A. Smith   [Continued from yesterday’s Part 2 and the preceding Part 1.]   As we’ve seen in Parts 1 and 2 of this surprisingly long post, seeking to reach a conclusion on the public-policy merits of New York’s section 421a tax abatement program, when applied to large condominium developments, Section 421a […]

What is efficiency? said jesting Pilate: Part 2, The analysis

7 February, 2017 (09:00) | Affordability, Apartments, Condominiums, Development, Housing, Incentives, New York City, Real estate taxes, Section 421-a, Speculation, Subsidy, Tax abatement, US News |

  By: David A. Smith   [Continued from yesterday’s Part 1.]   After all the paired comparisons and the careful quantitative analysis, is Section 421a for condominiums a good program for New York City?   We’re actually twins by different parents   Yesterday’s Part 1, scrutinizing paired-comparison of condo sales throughout New York City over […]

What is efficiency? said jesting Pilate: Part 1, The evidence

6 February, 2017 (09:00) | Affordability, Apartments, Condominiums, Development, Housing, Incentives, New York City, Real estate taxes, Section 421-a, Speculation, Subsidy, Tax abatement, US News |

  By: David A. Smith   Sources used in this post   Crain’s New York (30 January 2017) NYC Independent Budget Office report dated January 30, 2017 (pdf; green Georgia font),   For governments, subsidies exist for only two purposes: charity or incentive.    The 421a program is intended to spur new construction. It is […]

Month in Review, October, 2015: Part 2, The impossibility of stopping

6 November, 2015 (10:00) | Affordability, Affordable Housing, Air rights, Apartments, Blackstone, Boston, Boston Redevelopment Authority, Chapter 121A, Charlestown, Eminent domain, Land use, Month in review, PILOTs, Poverty deconcentration, Public housing, Real estate taxes, Redevelopment, Tax abatement, US News |

[Continued from yesterday’s Part 1.] By: David A. Smith Yesterday’s Part 1, retrospectively reorganizing October’s posts, all of which in one way or another concerned Boston, dealt with the obstacles that make (re)development appear psychologically impossible: guaranteed intense public opposition (often born of ignorance, some of experience); an agency that maintains a monopoly on approvals; […]

Month in Review, October, 2015: Part 1, The impossibility of starting

5 November, 2015 (10:00) | Affordability, Affordable Housing, Air rights, Apartments, Blackstone, Boston, Boston Redevelopment Authority, Chapter 121A, Charlestown, Eminent domain, Land use, Month in review, PILOTs, Poverty deconcentration, Public housing, Real estate taxes, Redevelopment, Tax abatement, US News |

By: David A. Smith Nine years ago, I formulated the production paradox: Whatever a developer wants to do, the neighbors will oppose – and it has, I now realize that it has a curious further consequence that I describe (badly) as the Paradox of Development Friction: The Paradox of Development Possibility Until development starts, starting […]