Con Edison rates will be going up less this month than requested thanks, in part, to CHIP’s intervention in the State Public Service Commission rate setting proceeding. This was the first time CHIP took part in the process. Con Ed had sought an 8.2% gas rate increase and 4.5% electric increase. First year increases under the approved tariff will instead be 2.3% for gas and 1.6% for electricity. Con Ed will also be required to provide automatic upload of benchmarking data by the end of the year, without charge.
Because of the higher purchase prices for condos receiving 421-a benefits, condo buyers in Manhattan spend on average 53 cents to 61 cents for each $1 of tax savings, according to the City Independent Budget Office. Condo owners in the rest of the city spend on average 42 cents to 50 cents for each $1 of tax savings, the IBO said in a new report. Somehow, the IBO concluded that the difference between the tax savings and the premium was a “wasted” benefit instead of part of the incentive value for developers to risk building in the first place.
The IBO’s argument, however, meshes neatly with Mayor de Blasio’s argument against continuing 421-a benefits for condos and his call for a new “mansion tax” on apartment sales over $2 million to support affordable rental development.