Governor Hochul Initiates Tax Cuts for Penn South Residents

New York City Department of Housing Preservation & Development Acting Commissioner Ahmed Tigani said, “This is what it looks like when we stand up for the New Yorkers who built and sustain this city. Whether it’s funding urgent capital repairs or signing up older New Yorkers to tools that keep rent costs stable, this Administration and HPD has been steadfast in our mission to support and preserve our Mitchell-Lama housing stock. Thanks to the leadership of the Governor and State legislature we have additional ways to strengthen that commitment, reinvest into this critical housing, and deepen our help and impact. When we protect affordable housing, we’re protecting the ability of individuals and families to stay and thrive in the neighborhoods they call home.”

State Senator Brad Hoylman-Sigal said, “Affordable housing developments in New York City are facing rising operating costs, which have threatened the long-term viability for these developments to remain affordable. In the FY2026 Budget we took steps to protect the affordability of Mitchell Lama buildings but, unfortunately, Article V co-ops, like Penn South, were excluded, despite traditionally being treated similarly under the law as Mitchell Lamas. That’s why Assemblymember Simone and I fought to pass separate legislation to cut the shelter rent tax burden for Article V co-ops in half – from 10% to 5% – giving them the same tax relief recently afforded to Mitchell Lamas. Our bill saves Penn South up to $2 million annually to help this storied limited equity coop remain an oasis of affordability in a sea of rising rents across Manhattan. I’m grateful to Senate Majority Leader Andrea Stewart-Cousins for making this bill a priority during the legislative session and to Governor Hochul for signing it into law today.”

Assemblymember Linda B. Rosenthal said, “Building and preserving affordable housing go hand-in-hand during an affordability crisis. That’s why I was incredibly proud as Chair of the Assembly Committee on Housing to push for an agreement in last year's budget that reduced the shelter rent tax for Mitchell-Lama developments across New York City and the state. The signing of today’s legislation – extending that very benefit to Penn South, a remarkable affordable coop community – builds on those crucial efforts by preserving this bastion of affordability for current and future generations. I commend Governor Hochul, the bill sponsors and the many advocates who made today’s effort a reality. I will continue fighting for common-sense measures that preserve and increase affordability for all New Yorkers in the next legislative session.”