On May 28, 2025, the NYC Council approved additional tax exemptions for McKenna Square Apartments, a 104-unit rental complex in Washington Heights, preserving its affordability under both Article V and new Article XI of the Private Housing Finance Law. The existing Article V exemption, which expired October 24, 2023, was extended retroactively to align with the closing date of the new 40-year Article XI exemption. Under the Article V extension, the project will pay the same real property taxes that would have been due absent any exemption during the retroactive period. Concurrently, the Article XI exemption establishes a 12% gross rent tax base for the first year, capped at 17% of contract rents or full taxes, with annual increases equal to the prior year's tax plus 25% of HUD contract rent increases. The sponsor, McKenna Square Preservation HDFC and its partnership, will undertake capital repairs including elevator upgrades, boiler and hot water tank replacements, façade and parking lot enhancements, and Aging in Place accessibility improvements. All 104 residential units, covered by a HUD Section 8 Mark-to-Market HAP contract through December 2033, will continue to target households earning no more than 50% of AMI, paying no more than 30% of income in rent. The transaction also introduces a 30% homeless set-aside for newly allocated units. A new 40-year regulatory agreement with HPD will enforce long-term affordability and preserve the property for low-income family rental housing. The resolutions waive eligibility for other tax abatements, ensuring the project exclusively benefits from Article V and Article XI provisions.