J-51 Updates for January 2026

1. On January 13, 2026, New York State Governor Hochul committed to:

Reforming J-51 to Preserve More Rent-Regulated Housing

First created in the 1950s, New York City’s J-51 tax incentives have helped incentivize major repairs and upgrades for apartment buildings in exchange for becoming or staying rent-regulated, preserving affordability and making sure buildings are kept habitable. However, J-51 in its current form has faced administrative challenges that have reduced uptake of this vital program.

Governor Hochul will propose an overhauled J-51 incentive that can better support capital repairs for New York City’s rent-stabilized housing stock, including streamlining the process. These changes will ensure that the program is modernized and facilitates necessary building upgrades that benefit tenants. In updating J-51, she will make sure key elements of New York’s housing stock remain safe, sustainable, and affordable for working-class families who call these buildings home.

Source: page 35 of the 2026 State of the State Book Available Here

2. On January 7, 2026, the J-51-R four-year extender bill moved to the Senate Housing, Construction and Community Development committee

Date of Action	Assembly Actions – Lowercase Senate Actions – UPPERCASE
Jan 07, 2026	referred to housing, construction and community development returned to senate died in assembly
Jun 11, 2025	referred to real property taxation delivered to assembly passed senate
Jun 04, 2025	advanced to third reading
May 29, 2025	2nd report cal.
May 28, 2025	1st report cal.1454
May 16, 2025	referred to housing, construction and community development

See NY State Senate Bill 2025-S8170. We are tracking this legislation.

3. HPD is shipping an online J-51-R portal next week

Moving forward, all J-51-R applications and supporting documents will only be accepted through the online application portal.

The application is designed to streamline the process for applicants, offering a secure and user-friendly experience that is accessible at any time. Users can easily create, manage, and track their J-51 R applications through the portal.

Key features of the J-51 R application include:

• Create an account to securely access the system
• 24/7 access, allowing users to work on application at their convenience
• Create and manage applications directly through the portal
• Save work in progress and submit when the application is complete
• Track the status of submitted applications
• Amend and resubmit existing applications if corrections or updates are needed
• Access a full history of submissions and amendments for reference