The Real Estate Board of New York has asked the Bloomberg administration to consider a real estate tax cap of 20 percent for buildings no longer eligible for the 421-a tax-abatement program, warning that if property taxes keep rising, landlords will make "affordable" units market-rate in order to keep up. But according to Bloomberg, "Our property taxes in New York City happen to be very low compared to the rest of the state." Not for long?

The 421-a program, which grants tax abatements for developers who set aside units for low-income tenants (so people like A-Rod can benefit), is up for renewal in Albany. But Bloomberg argues it shouldn't be renewed: "I understand why they would want lower taxes. But the bottom line is we have a deficit and I think it's hard to see how you could provide the services if we had to lower taxes." Vito Lopez, chairman of the state Assembly Housing Committee, said that the city could lose $500 million over the next three years if the caps are put into place.

Frank Marino of REBNY says, "We haven't seen a financial analysis that supports the city's position that it will lose money as a result of 421-a improvements being suggested. Without the type of changes we are proposing, less affordable housing will be maintained and built in New York City."