NEW YORK CITY—The wait is over. Legislation to replace 421-a has been passed.

The 2018 state budget—which includes new rules for affordable housing development—has been passed. In addition, the $153.1 billion earmarked for fiscal year 2018 spending is set to include $2.5 billion in funding to advance the creation or preservation of 100,000 affordable and 6,000 supportive housing units.

Under the FY 2018 budget—as part of the new “Affordable New York” Housing program—developers of new residential projects with 300 units or more in certain areas of Manhattan, Brooklyn and Queens would be eligible for a full property tax abatement for 35 years if the project creates a specific number of affordable rental units and meets newly established minimum construction wage requirements.

The units must remain affordable for 40 years. For all other affordable developments in New York City, the period of affordability and abatement eligibility would be tied to the number of affordable units. This new program will create an estimated 2,500 new units of affordable housing per year.

Additionally, the FY 2018 budget continues funding for the state's $20 billion comprehensive, five-year plan for affordable and supportive housing to ensure New Yorkers who are homeless or at risk of homelessness have safe and secure housing.

Of the overall budget, Governor Andrew M. Cuomo declares, “With this budget, New York is once again leading the nation and showing what responsible government can achieve. The result is a budget that advances the core progressive principles that built New York: investing in the middle class, strengthening the economy and creating opportunity for all.”

In a joint statement, the Real Estate Board of New York chairman Rob Speyer and president John Banks add, “We applaud the agreement reached between Governor Cuomo and the State Legislature, under the leadership of State Senate Majority Leader Flanagan, Independent Democratic Conference Leader Klein and Assembly Speaker Heastie regarding the affordable New York housing program. It will result in the production of substantially more affordable rental housing that is critical to New York City's growth and future.”

NEW YORK CITY—The wait is over. Legislation to replace 421-a has been passed.

The 2018 state budget—which includes new rules for affordable housing development—has been passed. In addition, the $153.1 billion earmarked for fiscal year 2018 spending is set to include $2.5 billion in funding to advance the creation or preservation of 100,000 affordable and 6,000 supportive housing units.

Under the FY 2018 budget—as part of the new “Affordable New York” Housing program—developers of new residential projects with 300 units or more in certain areas of Manhattan, Brooklyn and Queens would be eligible for a full property tax abatement for 35 years if the project creates a specific number of affordable rental units and meets newly established minimum construction wage requirements.

The units must remain affordable for 40 years. For all other affordable developments in New York City, the period of affordability and abatement eligibility would be tied to the number of affordable units. This new program will create an estimated 2,500 new units of affordable housing per year.

Additionally, the FY 2018 budget continues funding for the state's $20 billion comprehensive, five-year plan for affordable and supportive housing to ensure New Yorkers who are homeless or at risk of homelessness have safe and secure housing.

Of the overall budget, Governor Andrew M. Cuomo declares, “With this budget, New York is once again leading the nation and showing what responsible government can achieve. The result is a budget that advances the core progressive principles that built New York: investing in the middle class, strengthening the economy and creating opportunity for all.”

In a joint statement, the Real Estate Board of New York chairman Rob Speyer and president John Banks add, “We applaud the agreement reached between Governor Cuomo and the State Legislature, under the leadership of State Senate Majority Leader Flanagan, Independent Democratic Conference Leader Klein and Assembly Speaker Heastie regarding the affordable New York housing program. It will result in the production of substantially more affordable rental housing that is critical to New York City's growth and future.”