What's Now in Real Estate Finance (April 2026)

Topics from our April agenda included:

New York 421 a(16) Tax Abatement Update
Chris Manzer (Atlanta)

The group discussed recent transactional considerations under New York’s 421 a(16) property tax abatement program, with particular focus on construction completion deadlines. Projects relying on 421 a(16) benefits must generally achieve completion in the relatively near future, or risk losing eligibility for the abatement, making timing a critical diligence issue for both lenders and borrowers in multifamily financings.

A statutory extension is available to certain projects that filed a letter of intent in 2024, which can extend the completion deadline by up to five years. However, use of this extension requires compliance with more restrictive affordability options and eliminates certain owner favorable affordability structures. There are also practical challenges in changing affordability elections once rent schedules and marketing notices have been filed, underscoring the need for careful coordination among legal, tax, and development teams early in the process.

New York Building Loan Agreement and Notice of Lending Recording Requirements
Luke Teresi (New York) and Ben Nitzani (New York)

We discussed the evolving filing requirements for building loan agreements and notices of lending across the five boroughs. Certain clerks’ offices have increasingly taken the position, though not always consistently enforced, that documents executed by an “authorized signatory” alone may be rejected unless the signatory is identified as a member, manager, or equivalent role expressly authorized under the borrower or lender entity’s governing documents.

This development is particularly significant given New York lien law requirements, including strict deadlines for filing building loan agreements and modifications. Failure to timely record or file, as applicable, compliant documents may adversely impact lien priority.

Recent Client Facing AI and Technology Trainings
Dan Evans (New York)

The group discussed the firm’s recent client‑facing AI training and educational programs, which focused on practical uses of AI in legal and transactional workflows. These sessions are designed to help clients better understand emerging tools, real‑world applications, and related governance considerations. The firm continues to invest in AI capabilities and training resources to support clients as AI adoption and expectations around AI fluency continue to mature.