Residents of Penn South will soon benefit from tax cuts approved by Governor Kathy Hochul, as part of efforts to ease the financial burden on New York City households. The legislation, included in a broader affordability plan, will reduce taxes by half for nearly 100,000 Mitchell-Lama residents across the city, providing some relief amid ongoing inflation that has impacted earnings and savings. According to a press release, Governor Hochul said, "With inflation driving up the cost of housing across the United States, my administration is cutting taxes in half for Mitchell-Lama residents in New York City, keeping money in the pockets of nearly 100,000 hardworking households."
This measure has broader implications beyond immediate tax relief, as it allows New York City to implement local tax reductions for Penn South, which is the last remaining Article V co-op property in the city. The estimated $50 million in annual savings for Mitchell-Lama residents is part of Governor Hochul’s broader initiative to support housing affordability for middle-class New Yorkers. Speaking to the necessity of the measure, New York City Department of Housing Preservation & Development Acting Commissioner Ahmed Tigani told the Governor's Office, "This is what it looks like when we stand up for the New Yorkers who built and sustain this city."
The tax cuts are part of a series of fiscal initiatives introduced under Governor Hochul’s administration, including nearly $500 million allocated toward the preservation of Mitchell-Lama housing across New York State. This funding is included in the Governor’s $4 billion Affordability Agenda within the FY26 Budget. These measures come at a time when many New Yorkers are closely monitoring the rising cost of living and the availability of affordable housing.
Legislative supporters have played a key role in efforts to ensure that Article V co-ops, which were previously excluded from past fiscal legislation, now receive similar benefits to those provided to Mitchell-Lama properties. State Senator Brad Hoylman-Sigal expressed his commitment to affordability in housing by saying, "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." Assemblymember Linda B. Rosenthal emphasized the importance of building on previous efforts to maintain and expand affordable housing options for future generations, particularly for those at the margins of the housing market, as reported by the Governor's Office.
Penn South residents responded to the development, which was acknowledged by local officials, including New York City Council Member Erik Bottcher, who stated in a press release, "Penn South is a cornerstone of affordability in our community, and today’s action ensures it will remain so for generations to come." The legislation is focused on maintaining housing access for residents who have long lived and worked in the city.
