Brooklyn developer lands state budget tax break for Williamsburg waterfront complex

An expired tax-break program was extended in New York’s state budget to cover the River Ring housing complex on the Williamsburg waterfront in Brooklyn. Gov. Kathy Hochul and state lawmakers included the extension in the housing bill expected to be approved later. The extension makes the Two Trees development eligible for 421a, which largely waives property taxes in exchange for affordable housing commitments. Two Trees will miss a 2031 completion deadline but will still qualify, improving project financial feasibility. The program bases property taxes on assessed value before development, creating millions in savings. The project includes two high-rise buildings, about 1,200 apartments, a new YMCA, and a $31 million grant for senior housing elsewhere in northern Brooklyn.

"Gov. Kathy Hochul and state lawmakers agreed to include an extension of an expired tax break program to cover the sprawling River Ring housing complex in Brooklyn in the estimated $268 billion budget's housing bill, which the state Legislature is set to approve later in the day."

"The deal makes the project from influential Brooklyn developer Two Trees eligible for the tax break program known as 421a, which waives the bulk of a development's property tax bill in exchange for some affordable housing commitments."

"Two Trees will miss a 2031 deadline to complete its project and still qualify for the tax break. It needs the extension to make the project financially feasible, company spokesperson David Lombino said."

"The 421a program requires the city finance department to tax properties based on their assessed value before development, leading to millions of dollars in savings for owners. For two nearby buildings at 420 Kent Ave. and 1 North Fourth Place, the differences in value are roughly $54 million each, city records show."

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