Metro

Our taxes aren’t too damn high: Hizzoner

Arguing that “our property tax is not that high,” Mayor Bloomberg yesterday shot down a proposal by the real-estate industry to cap taxes on apartment buildings once they are no longer eligible for lucrative breaks under a program aimed at creating affordable housing.

“Our property taxes in New York City happen to be very low compared to the rest of the state,” said the mayor.

He rejected threats that landlords will turn thousands of “affordable” apartments into market-rate units if their tax breaks are not extended.

“I understand why they would want lower taxes. But the bottom line is we have a deficit and I think it’s hard to see how you could provide the services if we had to lower taxes,” Bloomberg said.

Developers are warning that as many as 10,000 “affordable” apartments in the 421-a tax-abatement program might be lost over the next few years because owners can’t afford to pay property taxes that, in some cases, have reached a third or more of their gross income.

The Real Estate Board of New York, which represents the city’s largest developers, has asked the administration to consider a tax cap of 20 percent.

Vito Lopez, chairman of the state Assembly Housing Committee, estimated that the city would lose nearly $500 million over the next three years if the industry proposal is enacted.

The 421-a program generally grants developers tax abatements, usually for 20 years, in return for setting aside 20 percent of their units for lower-income tenants. The program, which expired last year, is up for renewal in Albany.

Lopez said even if the city went along with the industry’s request for a tax cap, state legislators might balk, considering that the city faces multibillion-dollar deficits and is planning a new round of service cuts.

“We’re talking over the next three years the city losing almost half a billion dollars,” Lopez said.

Frank Marino, a spokesman for the real estate board, took issue with the mayor’s view of property taxes.

“New York City taxes multifamily residential developments at a far higher rate than other major American cities,” he said.

“We haven’t seen a financial analysis that supports the city’s position that it will lose money as a result of 421-a improvements being suggested. Without the type of changes we are proposing, less affordable housing will be maintained and built in New York City,” he said.

Marino offered examples of 11 apartment buildings in five cities where taxes are lower than in New York. They ranged from 10 percent of gross income in Washington, DC, to 23 percent in Boston.

At the same time Albany is considering renewing the 421-a program, it is also s weighing extending regulations for the city’s one million rent-stabilized apartments.

“The question really on 421-a is: Does it get tied into rent regulations?” Lopez said.

Tenants are counting on the Democratic-controlled Assembly to protect their interests, while the real estate industry is looking to the Republican-controlled state Senate for its protections.

david.seifman@nypost.com