DHCR, MDR filings are mandatory to keep enjoying 421-a benefits

As per 421-a Rules and Regulations, a property which is currently benefiting of the 421-a program, unrelated to whether the property has obtained a 421-a Final Certificate of Eligibility, or is in the process of obtaining such certificate, is required to have the Tenant Registration updated with the Department of Housing & Community Renewal (DHCR) annually. Additionally, the Multiple Dwelling Registration (MDR), is required to be up to date with NYC Housing Preservation and Development (HPD).

The MDR expires annually and must be updated no later than September 1st of each year.

Failure to keep the tenant registrations up to date with DHCR, or an expired MDR will result in revocation of the 421-a benefits and retroactive cancellation of the 421-a, causing the application of previous abetted tax liability charges coupled with interest fees.

Furthermore, 2020 Annual Registration must reflect that status of the buildings and apartments as of April 1, 2020, and should be submitted no later than July 31, 2020.

This publication is issued by Simon Meyrowitz & Meyrowitz, P.C. for informational purposes only and does not constitute legal advice or establish an attorney-client relationship. To ensure compliance with requirements imposed by the IRS, we inform you that unless specifically indicated otherwise, any tax advice contained in this publication was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any tax-related matter addressed herein. In some jurisdictions, this publication may be considered attorney advertising.