Council Hears Mayor's Tax Break Plan After Cold Reception from Cuomo

New York Governor Cuomo recently rebuffed Mayor de Blasio's proposal for renewing a real estate tax break. But on Monday, supporters made another push for the mayor's plan at a City Council hearing.

De Blasio wants to amend the city's 421-a property tax program. The program began decades ago as a way to incentivize developers to build more residential units. The current program has an affordable housing requirement, but critics say many developers fail to live up to the commitment. The mayor's bill would require developers to make at least 25 percent of their units affordable for low-income New Yorkers. That's up from 20 percent under the current law.

Deputy mayor Alicia Glen said the amendment would also expand that requiremen,t to encompass all areas of the city.

"The bottom line is, no more tax breaks anywhere in New York City without building affordable housing everywhere if you want a tax exemption," Glen said.

The bill also includes a measure to get rid of tax breaks for luxury condo developers, as well as a mansion tax on the most expensive 10 percent of homes. Glen said revenue from that tax would go toward filling a nearly 2 billion dollar funding gap for affordable housing.

"That's enough to house 95 thousand people; let's not just talk units, let's talk people," she said. "95 thousand people will be housed with that mansion tax, which, by the way, is roughly the entire population of Albany."

The mayor has said his primary goal is to reform an outdated program. He also says he's willing to work with Governor Cuomo to find common ground. The current 421-a program expires June 15.