We are proud to share insights from Jason Hershkowitz, head of Seiden & Schein’s tax incentives group, and Alvin Schein, co-founder of our boutique real estate law firm, as featured in The Real Deal. Their expert commentary sheds light on the newly proposed rules for the 485-x tax exemption and the 467-m office-to-residential conversion program.
Jason Hershkowitz underscored the complexities of the MWBE (Minority and Women-Owned Business Enterprises) hiring requirement, where developers must allocate at least 25% of contract costs. He clarified: “If you don’t hire 25% MWBE — which is a surefire way to meet the requirement — then you must demonstrate ‘reasonable efforts,’ a standard that has no guaranteed path to compliance.”
Alvin Schein further highlighted the significant risks developers face if the New York City Department of Housing Preservation and Development (HPD) finds a completed project non-compliant. At that stage, developers would have limited or no opportunity to address deficiencies, potentially jeopardizing their tax benefits.
With decades of experience at the forefront of housing and tax incentives in NYC, Seiden & Schein, P.C. is uniquely equipped to navigate these challenging regulatory frameworks. Our extensive expertise ensures our clients have the guidance needed to manage compliance while maximizing project success.
Be sure to check out the just-released bonus episode of our Shaping the NYC Skyline podcast, titled 485-x and 467-m Proposed Rules: What Developers Need to Know. In this episode, we break down the essential differences between the 421-a rules and the proposed rules for 485-x and 467-m, highlighting crucial deadlines and compliance requirements that developers need to know to avoid costly penalties and maintain eligibility for these vital tax incentives. Watch the episode on Apple Podcasts, any major podcast platform, or the Seiden & Schein website.
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Alvin Schein [email protected]
Jason Hershkowitz [email protected]
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www.seidenschein.com
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