Condos built under the 421a tax abatement program, are starting to fade away to a point where there will eventually not be any more.

Created in 1971 to spur development in neglected neighborhoods of New York, the 421-a program allowed condo buildings to be exempted from millions of dollars in property taxes for 10 to 25 years, depending on location and other criteria. The program expired in 2016, but the tax breaks persist depending on when a building was built. Owners of 421-a apartments pay a fraction of the property’s full taxes during a period of exemption, with the tax burden rising steadily until it reaches the full assessed value.

While some of these benefits will last into the 2040s, the end of those benefits could not have come at a worse time for many sellers, who are faced with mounting taxes and stiff competition in a weak market. Some are selling for marginal returns or even less than what they paid several years ago.

For savvy buyers, that could mean discounts in fancy condos that were built from the early- to mid-2000s, with leverage to negotiate and a much clearer picture of their future tax bills.

The moral is the same for longtime owners and potential buyers in tax-abated buildings: never mind the price tag, do the math.

A full list of 421a properties can be found here.

(source: newyokrtimes.com, nyc.gov)