J-51 Tax Abatement Relaunched with Stronger Tenant Protections
The J-51 tax abatement program that supports the rehabilitation and sustainability of rent-regulated, cooperative, and condominium buildings that expired on June 29,2022 has been relaunched by New York City. Rebranded J-51 R, the revived program provides financial relief to property owners undertaking essential repairs and structural stabilization; and in alignment with the city’s broader climate goals, also offers incentives for energy-efficient upgrades — particularly the mandates set forth by Local Law 97. Included in the updates to J-51 R is the stipulation that “buildings benefiting from the tax break remain rent-stabilized for the duration of the benefit term,” and “property owner are prohibited from passing renovation costs onto tenants through major capital improvement (MCI) increases.” Program eligibility is restricted to rental buildings where at least 50% of the units are rent-regulated with rents below 80% of the area median income (AMI), co-ops and condos with assessed unit value under $45,000, and certain Mitchell-Lama and redevelopment properties. Applications for eligible construction projects completed before December 30, 2024, must be submitted by April 30, 2025, and within four months upon completion for those eligible projects completed thereafter.
Source: https://www.nyc.gov/site/hpd/services-and-information/tax-incentives-j-51.page