Brooklyn's River Ring project secures revived tax break in delayed state budget
A controversial tax break for the River Ring housing project in Brooklyn has been revived in New York’s long-delayed state budget. The measure extends the expired 421a program, allowing developer Two Trees to save millions in property taxes. Lawmakers are now set to approve the budget, which is running seven weeks behind schedule. The 421a program cuts most property taxes for developers who include affordable housing in their projects. It ended in June 2022, but existing developments could still qualify if finished by 2031. The River Ring project, however, faced missing that deadline—until this year’s budget removed it entirely for the site.
The River Ring complex will feature two high-rise towers, one 710 feet tall and the other 560 feet, with roughly 1,200 apartments. About 30% of these will be set aside for low- and middle-income renters. The first tower won’t open until 2033, well beyond the original cutoff.
Assembly Speaker Carl Heastie and Assemblymember Emily Gallagher backed the extension after talks with Two Trees and labour unions. The Real Estate Board of New York (REBNY) also lobbied for the change. Its chair, Jed Walentas, is the principal of Two Trees, the project’s developer.
Beyond housing, the development will include a new YMCA and a $31 million grant for senior housing in northern Brooklyn. The budget’s passage next week will finalise the tax break for River Ring. Without the extension, Two Trees would have lost access to the 421a incentive. The project will now move forward with reduced property tax costs in exchange for its affordable housing commitments.
