485-x due diligence for a development-site acquisition

If a site is being priced on the assumption that 485-x benefits will be available, that assumption should be diligenced like zoning or environmental risk.

Project geometry

Confirm realistic unit count, tenure and whether the 99/100 or 150-unit thresholds are relevant. Verify Zone A/B status using official geography rather than marketing labels.

Timing

Identify whether construction has commenced, how that date is supported and whether any registration deadline has run. If the site contains partially completed work, obtain the project’s agency history and professional analysis.

Prior dwelling units

HPD notes replacement obligations when dwelling units existed on the eligible site during the relevant lookback period and were later demolished, removed or reconfigured. Site-history diligence can therefore affect the affordability program.

Labor assumptions

If the design is at or above 100 units, reconcile construction-wage requirements with hard-cost assumptions and contracting strategy. At 30+ units, consider building-service prevailing-wage rules in the operating model, subject to the governing exceptions.

Document request

For an in-process project, request registration evidence, docket correspondence, workbooks, HPD comments, marketing records, wage notices/certifications, restrictive declarations, professional analyses and any agency deficiency notices.

A land price supported by a tax benefit is only as good as the diligence supporting the benefit.