A new study by the New York City Independent Budget Office (IBO) claims that the city wasted as much as $2.8 billion over an 11-year period on condos that were a part its affordable housing tax break program, known as 421-a. Reuters staffer Hillary Russ reports on the study which shows that benefits (tax relief) of 421-a are going to condo owners, rather than the the fulfillment of the program's mandate - stimulating additional housing development.
Condo units, which make a up a third of the program, were the only type of housing in the program examined by the IBO in this study:
"Condo owners receive tax relief through a program intended to incentivize development," the IBO's Geoffrey Propheter wrote in his report. "It represents wasted dollars because buyers are receiving more in benefits than they pay for."