The Kingston School Board has approved a plan to offer tax exemptions for newly constructed accessory dwelling units and mixed-income multifamily housing. This decision, made at the board’s meeting on **September 24, 2024**, represents a significant step towards enhancing the city’s housing landscape. The approval follows a similar endorsement by the Common Council in **August 2024**. However, implementation of these exemptions is contingent upon approval from the **Ulster County Legislature**.
The **421-P exemption** enables municipalities to exempt new or converted rental properties with multiple dwelling units from taxation and ad valorem levies, which are taxes based on property values. To qualify, new structures must contain at least **10 units** and be situated on vacant or underutilized land. Furthermore, at least **25%** of the units must be affordable to households earning between **60%** and **80%** of the Area Median Income (AMI), while no units can accommodate households with incomes exceeding **100% AMI**.
Properties that meet these criteria will enjoy a full tax exemption during the construction phase, lasting up to **three years**, followed by a **25-year period** of gradually decreasing tax exemptions. The first year post-construction will see a **96%** exemption, which will decrease by **4%** each subsequent year. According to the mayor’s office, no property benefiting from these exemptions will pay less in property taxes than it did prior to receiving the exemption.
In addition, the **421-P*2 exemption** allows for partial tax exemptions on new accessory dwelling units for a period of **10 years**. This exemption is **100%** during the first year, reducing gradually over the next five years. The accessory dwelling unit, whether attached or detached, must provide independent living facilities and cannot be utilized for short-term rentals.
Both initiatives aim to support the city’s ambitious goal of approving **1,000 housing units** in Kingston by **2029**. Mayor **Steve Noble** emphasized the importance of these measures, stating, “This two-pronged legislation supports homeowners to create additional housing on their property as well as developers to build or redevelop larger housing projects.”
Superintendent of the **Kingston City School District**, **Paul Padalino**, highlighted the broader community impact, noting that “lack of adequate, proper housing has an impact on our entire community, especially our young people.” He added that these initiatives will help ensure more families gain access to stable housing, which is crucial for the mental and emotional well-being of students and their academic success.
For further details on the **421-P exemption** for multifamily projects, visit [New York State Senate](https://bit.ly/4nyD8WX). For information regarding the **421-P*2 exemption** for accessory dwelling units, refer to the [New York State Senate legislation page](https://www.nysenate.gov/legislation/laws/RPT/421-P*2).
