Developers Face Specter Of Permanent Affordable Housing

Law360, New York (December 14, 2011, 4:21 PM EST) -- New York developers, who have long faced community activists and city planners agitating for affordable housing, are now feeling pressure to up the ante and keep units that way permanently.

Traditionally, large cities like New York have encouraged developers to build affordable housing by offering tax credits and abatements. The tax breaks, however, aren't permanent, and building owners usually bump the rents up to market rate when the tax breaks expire, be it after five or 15 or 30 years.

Over the past few years, though,...
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