New York 485-x filings cluster at 99 units to avoid wage rule

Ninety-nine apartments on the lot, ninety-nine apartments in the plans, and rarely a 100th. New York developers are registering new buildings for a state property tax break at exactly 99 units, apparently to avoid tripping a higher wage requirement. The Oct. 14 release of city registrations for the program, called 485-x, added 20 projects with exactly 99 units and none with 100 to 104, according to Latent Urban Ventures, a New York real estate and technology firm. It added one registration at 100 or more units. Across the April and October releases, 49 registered projects have exactly 99 apartments. The pattern appears before projects register. As of Sept. 20, Department of Buildings records show 112 unregistered projects with exactly 99 units and one at 100, Latent Urban found. The pipeline also holds 148 unregistered projects of 100 or more units, and 80 appeared to have started construction. Latent reviewed 74 and ruled out 62 as using other housing programs, being condominiums or falling outside the rental pipeline. Of those 62, 61 are absent from the latest release. Among projects that began construction between April 1 and Sept. 20, 63% of those at 99 units had registered by ...