We are writing to inform you of significant developments regarding the newly updated “J-51 Reform” (J-51 R) real property tax abatement program. The New York City Department of Housing Preservation and Development (HPD) recently released Proposed Rules, along with the Certified Reasonable Cost (CRC) schedule and application materials.
Important Deadlines:
- April 30, 2025: If your building completed eligible construction between June 30, 2022 and December 30, 2024, your J-51 R application must be filed by this date.
- Four-month deadline: For construction completed after December 31, 2024, applications must be filed within four months of the project’s completion.
Upcoming Webinar – March 19, 2025:
Join us for a live webinar on March 19, 2025, where our experienced attorneys will provide a comprehensive overview of the J-51 R program, covering:
- Detailed explanations of the new J-51 R program and CRC schedule
- Essential application requirements and deadlines
- Best practices to ensure compliance and maximize available tax abatements
- Specific eligibility criteria for various building types
The webinar will include a Q&A session to address your specific questions and concerns.
Eligible Residential Buildings:
- Co-ops and condos with average assessed valuations at or below $45,000 per unit
- Rental buildings with at least 50% of units rented at or below 80% of Area Median Income (AMI)
- Mitchell-Lama and redevelopment company properties
Eligible Improvements:
- Façade repairs and maintenance (Local Law 11 compliance)
- Energy-efficiency upgrades (Local Law 97 compliance)
- Roof replacements
- Window installations
- Boiler replacements and heating system enhancements
- Electrical and plumbing system upgrades
Compliance & Timing Considerations
- Eligible projects must complete construction after June 29, 2022, and before June 30, 2026, within a maximum duration of 30 months from commencement.
- Projects started after December 30, 2024, must comply with pre-construction requirements, including tenant notification and filing of a Notice of Intent.
How We Can Help:
Our team is prepared to support you in evaluating your eligibility, navigating pre-construction requirements, preparing applications, and ensuring full compliance with all regulatory requirements. As a full-service real estate firm R&E can also assist with financing your J-51 R eligible improvements.
To register for our webinar, click here. To discuss your potential J-51 Reform Program benefits and how we can help you, please contact Daniel M. Bernstein or Benjamin M. Williams at your earliest convenience.
Note: This communication is intended for informational purposes only and does not constitute legal advice. Attorney Advertising.