New J-51 Property Tax Abatement Program

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 Construction: Alterations or improvements to an eligible building must commence after January 1, 2020, and complete between June 29, 2022 and June 30, 2026, though construction must complete within 30 months of commencement.
• Construction Cost: Eligible construction must cost at least $1,500 per apartment.
• Rental Buildings: At least half of the apartments must have rents below approximately 55-80% of the Area Median Income (AMI).
• Co-ops/Condos: These buildings must have an assessed value (AV) of less than $45,001 per apartment in the year construction began.

Please note, the exact amount of potential tax savings and full eligibility criteria is not yet available, as we are awaiting the Certified Reasonable Cost Schedule, Qualifying Rents, and other guidance from the NYC Department of Housing Preservation and Development (HPD).

Important Deadlines and Considerations:

• Four-Month Application Window: For properties that have already completed construction, you must apply for J-51 by April 18, 2025. Other properties must apply within four months after construction completes.
• For Planned Renovations: If you are considering renovations that would commence after December 18, 2024, please hold off on commencing any work until after required tenant notifications are made and the Notice of Intent is filed with HPD.

If you have an existing residential property for which you have recently performed or are contemplating renovations and would like to evaluate whether it may qualify for the new J-51 program, please contact Daniel M. Bernstein (regarding rental properties) or Benjamin M. Williams (regarding co-ops/condos), both of whom authored the above, or contact your other trusted Rosenberg & Estis, P.C. attorney. Our team can help you determine eligibility and guide you through the application process to maximize potential tax savings and avoid non-compliance.