NYC wastes US$2.8b on affordable housing tax breaks

New York

NEW York City wasted as much as US$2.8 billion over an 11-year period on condominium apartments included in a massive affordable housing tax break programme, according to a new study to be released on Monday.

Instead of fulfilling its mandate to stimulate additional housing development, the benefits are going to condo owners in the form of tax relief through the programme known as 421-a, according to the study by the New York City Independent Budget Office (IBO), a non-partisan fiscal watchdog.