NEW YORK CITY—Elimination of the 421-a partial tax exemption program would lead to the loss of more than 5,484 affordable rental units, according to an analysis conducted by the Real Estate Board of New York. The association released a report of that research today in advance of the scheduled expiration of the program in June.

The negative effect on housing production would be significant if the 421-a program were not renewed, REBNY's report argues. The group says that the loss of nearly 5,500 units would be a considerable setback to the city's affordable housing efforts.

“The renewal of 421-a is one critical element of the city's plan to address our housing shortage,” says Steven Spinola, president of the Real Estate Board of New York. “As our analysis demonstrates, without this important program, 5,484 units of affordable housing would immediately be sent back to the drawing board. Some of the units would end up as high-end luxury condominiums and some of the middle- and low-income housing now in the works would be lost forever. Without 421-a, our housing crisis will take an immediate turn for the worse.”