421a The Greenpoint

If you are thinking of buying, you want to make sure that there is a provision in your contract that if there is no 421 rebate, your contract is not valid and deposit will be returned with interest.

300, have you seen buyers getting these provisions? My friend is in a similar situation for a project UC in NoMad.

tehtank, I am sure sales office gets this question every day so I recommend asking them. The construction lender would also want evidence of such sii f they have their construction financing in place, should be OK.

Does anyone know if this is project is new 421a called Affordable New York? I read that it requires some low-income apts. on site.

If the seller goes not give that, I would not buy at the price which suggests 421a abatement. The price will be very different. I have no personal knowledge of such provision but with oversupply currently, everything should be negotiable.

One danger in buying in a fast selling project is that if the project sells out before the tax abatement is secured, there is little incentive for the developer to continue jumping through all the hoops to obtain it. I know of an instance - 32 Morton St - where a developer did a Coop conversion, sold all the units quickly with a J-51 promised in the Offering Plan, and then didn't bother making a complete filing with the City and the J-51 was denied. The result was that the maintenance was very high relative to all the similar Coops since the building was at full taxes (ironically, many years later units actually showed greater appreciation because the maintenance did not go up substantially at a time when all the other buildings had their tax abatement expiring and maintenance doubling). The Coop and the sponsor were in litigation over this for years (which also hindered sales in the building because no one wants to buy into a project where the unit owners are suing the Sponsor.