420-a Tax Incentive (420-a)

The 420-a Tax Incentive program provides a complete real estate tax exemption for an existing Housing Development Fund Corporation (HDFC) that provides affordable housing and supportive services using city or state financial assistance. The program requires the building to be used as low-income housing. The HDFCs that receive the 420-a exemption usually reserve a portion of units for the homeless and people with special needs and provide supportive social services for residents.

Program Information

• Scale: Small Scale (between 1 and 999 units)
• Timeframe: 1982 - Present
• Occupancy Tenure: Rental
• Construction Type: New Construction, Rehabilitation
• Building Type: Multi-family
• Developer/Owners: Non-profit
• Income: Households must have an annual income of up to 80 percent of Area Median Income (AMI).
• Special Populations: Homeless Individuals, Persons with Disabilities

More Resources

Related Programs: 420-c Tax Incentive