City council passes Sanchez’s J-51 tax abatement extension bill for co-ops and condos

The City council announced in a Sept. 24 news release it had passed Intro. 1015, a bill by Council member Pierina Sanchez, and it is now awaiting the mayor’s signature. The bill would expand the J-51 tax abatement program, which helps eligible buildings offset the cost of upgrades by reducing property taxes.

The bill is an authorization of the same expansion passed in the state budget in the spring, necessary to implement the expansion on a city level, The Press previously reported.

Eligible buildings include condos and co-ops where the average assessed valuation is under $60,000 per dwelling unit, as well as rental buildings where more than half the units are affordable, are operated by limited-profit housing companies, or that receive substantial governmental assistance, according to the release.

The owner of an eligible building could recover up to 100% of the reasonable cost of the work over a period of 20 years, the release said. The bill would also provide for tenant protections, including the possibility of benefit revocations if an owner doesn’t comply, according to the release.

Sanchez said in a statement the council must do everything in its power to preserve and retrofit the city’s aging building stock.

“Today, we’re doing just that by passing Intro. 1015 and extending the J-51 program — a tax benefit that could benefit up to 300,000 co-ops and condos, and rental buildings,” Sanchez said. “I am proud to have led again the authorization of J-51, which will allow more owners to reach their emission targets under Local Law 97, without shifting the cost burden to their tenants, over a longer time window than previous versions.”