A quiet adjustment buried in Albany’s first budget bill could reshape the financing plan for Two Trees Management’s massive River Ring project on the Williamsburg waterfront. The language, now circulating among statehouse insiders, targets New York’s 421‑a property‑tax exemption that developers have long relied on to trim construction and operating costs. If it becomes law, the change would determine which tax break River Ring can actually use, a technical call that could either speed up or slow down hundreds of apartments and a new public park.
According to Crain’s New York Business, the first of the state’s budget bills includes a tweak to the 421‑a exemption that the outlet reports is tailored to the River Ring parcels. Crain’s characterizes the move as a narrow, project‑specific fix rather than a full restart of the defunct 421‑a program, and says the language was added during negotiations between Gov. Kathy Hochul and legislative leaders.
What Is River Ring?
River Ring is Two Trees’ two‑tower waterfront megaproject that secured City Council approval after a lengthy public review. The plan calls for roughly 1,050 apartments, a sizable public waterfront park and a new YMCA. The site covers multiple parcels along River Street between North First and North Third Streets in Williamsburg, as detailed in River Ring planning and environmental documents from the NYC Department of City Planning.
Why The Tax Change Matters
Two Trees and several industry analysts have warned that the state’s 485‑x replacement for 421‑a threw River Ring’s original financing into doubt, largely because of higher wage requirements and tighter affordability rules. As reported by The Real Deal, the developer argued that wage mandates combined with lower affordability thresholds “dramatically increases the costs, and makes it untenable in this environment.”
The budget tweak highlighted by Crain’s would, in effect, reshape the menu of tax benefits available to the River Ring parcels. That technical shift could let the project use a 421‑a option that disappeared when the broader program expired in 2022. The overall budget process in Albany has been fluid this month, with multiple housing measures revised as leaders hammer out a final deal, and the bigger housing and tax framework has been summarized by Bloomberg…