The New York City Department of Housing Preservation and Development (HPD) has officially released the final rules for the J-51 Reform Program, significantly revising the city’s longstanding property tax incentive initiative designed to promote building improvements...
Part GG of the New York State Budget, known as the Affordable Housing Retention Act (“AHRA”), enables condominium conversions in NYC for certain affordable housing developments. Condo conversions create opportunities for owners of rental buildings to both sell units...
After decades of operating under its predecessor and nearly three years with no active program in place, New York City’s landmark real property tax abatement initiative for building upgrades—widely known as “J-51”—has been comprehensively revamped and relaunched....
Written by Daniel Bernstein & Brett B. Theis Office-to-residential (OTR) conversions are emerging as a powerful solution to NYC’s vacant office space problem. With demand for office leasing still below pre-pandemic levels and housing shortages persisting, the...
NYC’s Heavy Property Tax Burden: A Barrier to Rental Development One of the biggest hurdles for developers in NYC is the significant property tax burden, which can eat up around 30% of rental income. Without economically viable tax incentives, many new rental...
Property owners seeking or benefiting from residential tax exemption programs like 421-a, 485-x, or 467-m often assume that their assessed values are inconsequential since their tax liabilities are largely offset. However, even with these exemptions in place, actively...
On December 18, 2024, the new J-51 property tax abatement program bill was signed into law. This J-51 program provides potential property tax savings for eligible buildings in New York City that meet certain requirements. Major Eligibility Requirements: Eligible...
Super Lawyers magazine recently interviewed me about the possibilities of office to residential conversions in NYC. Here are some insights I shared during the interview: Thanks to NYS’s new 467-m “Affordable Housing from Commercial Conversions” aka AHCC property tax...
As NYC residential developers evaluate the new 485-x tax incentive program (replacement for the expired 421-a tax incentive program) they have raised concerns that the burdensome construction wage requirements may deter the development of “very large rental projects”...
The 421-a Completion extension (June 15, 2031 for eligible projects) has made construction of tens of thousands of new apartments economically viable. It is expected that such sites can now obtain financing and resume construction. Understanding the 421-a Program The...