Effective August 12, 2016 are two new definitions for “underutilized” and “affordable housing project”, as they relate to 6 NYCRR Subpart 375-3 of the Brownfield Cleanup (BCP) program. This is a result of formally proposed revisions to remain in compliance with Part BB, Chapter 56 of the Laws of 2015. The new definitions can be found at: http://www.dec.ny.gov/regulations/101915.html.
The amendments to 6 NYCRR Subpart 375-3 are significant because they consider the vast difference in potential state tax liability between New York City Brownfield sites and those located throughout the rest of the Site. They aim to limit excessive property tax credits for projects with high development costs, and promote further development in areas of greatest need.
These new definitions will be used alongside several other criteria to determine whether a site within the five boroughs is eligible for property tax credits. In addition, the five percent affordable housing tax credit bonus will be available to those who meet conditions set forth in the “affordable housing project” definition.
Call Walden today to learn how these changes will impact your business. We have the experience and know-how to help you navigate any new regulations. 516-624-7200