City Council extends J-51 tax incentive

The City Council Committee on Housing and Buildings approved the bill to extend the J-51 tax abatement. The J-51 property tax exemption provides relief to owners of older residential buildings in exchange for renovating or converting commercial developments into residential units. The tax break expired in June 2020. 

Many owners were not sure if they will be able to get the tax exemption. Now, the City Council extended the exemption to June 30, 2022. In addition, the measure also applies to projects that occurred after the expiration in 2020. 

The bill aims to ensure the safety of New Yorkers and make housing in the city more affordable by providing tax relief to owners who decide to make improvements to their properties. The J-51 tax abatement grants a 34-year exemption from the increase in real estate taxes to affordable housing projects and a 14-year exemption to other projects. 

The program is limited to co-ops and condos with an average assessed value of less than $30,000 per dwelling unit. Senator Toby Ann Stavisky and Assemblyman Edward Braunstein sponsored the bill. 

“The J-51 program was designed to help property owners improve their property. It incentivizes property owners to amend and modernize their buildings to eliminate fire and other hazards,” Senator Toby Ann Stavisky said in the statement released with the legislation.

“These incentives have helped ensure the safety of New York City tenants and provide needed building renovations. They have also helped provide affordable housing while reducing blight within our communities. I thank my colleagues in the Senate and Assembly for passing this extension.”

Resources:

“NYC City Council Bans Gas Hookups in New Buildings, Extends J-51 Tax Abatement,” by Rebecca Baird-Remba (Commercial Observer, 2021)

“City Council approves Queens lawmaker’s bill extending the J-51 property tax exemption and abatement program,” by Carlotta Mohamed (QNS, 2021)

“City Council eyes bringing back tax break for property owners,” by Kathryn Brenzel (The Real Deal, 2021)

“Senate and Assembly Pass Stavisky-Braunstein Bill Extending the J-51 Property Tax Exemption and Abatement Program,” by Toby Ann Stavisky (The New York State Senate, 2021)