485X / Guide
Program
485-x, formally the Affordable Neighborhoods for New Yorkers (ANNY) tax incentive under New York Real Property Tax Law § 485-x, is a New York City real-property-tax exemption program for qualifying new multiple dwellings, eligible conversions and homeownership projects.
The program is best understood as a project framework rather than a single tax calculation. Eligibility and benefits depend on unit count, project location, tenure, affordability, commencement and completion dates, wages, site history and filing compliance.
The program window
HPD states that eligible projects generally must contain at least six dwelling units, commence after June 15, 2022 and on or before June 15, 2034, and complete on or before June 15, 2038. These dates should be verified against the statute and current HPD rules for the specific project.
Four principal options
Option A — Large and very large rental
Large rental projects generally begin at 100 residential units. Qualifying projects receive a 35-year benefit and generally provide 25% affordable housing units averaging 80% AMI. A separate very-large framework applies to qualifying 150+ unit projects in Zone A or Zone B, with a 40-year benefit and 25% affordable units averaging 60% AMI.
Option B — Modest rental
Qualifying 6–99 unit rental projects can fall within Option B, generally with a 35-year benefit and 20% affordable housing units averaging 80% AMI.
Option C — Small rental
Option C is a separate framework for qualifying 6–10 unit rentals. HPD states that at least half of the units must be rent stabilized, the project cannot be in Manhattan, and the zoning lot cannot permit residential floor area exceeding 12,500 square feet.
Option D — Homeownership
Qualifying 6+ unit homeownership projects may receive a 20-year benefit. HPD states that Option D projects cannot be in Manhattan, are subject to an assessed-valuation-per-square-foot cap, and require each unit owner to agree to a five-year primary-residence period.
Why project teams should model 485-x early
The difference between 99 and 100 units is not cosmetic. Crossing 100 units can alter the applicable affordability option and bring construction wage requirements into the analysis. Likewise, a 150-unit site in Zone A or B presents a different affordability, benefit-duration and labor framework. 485-x therefore belongs in land underwriting, unit-count studies and capital planning—not only at the application stage.