New bill could help Riverdale co-ops pay for climate upgrades

Middle-class co-op buildings could get more help paying for building upgrades under a new city council bill that would expand a property tax abatement program.

Introduced by Council member Pierina Sanchez Aug. 13, Intro. 1015-2026 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.

If the bill is passed, 56 additional buildings — or 5,121 units — in New York City Council District 11 would likely be eligible, according to data aggregated from the Green Co-op Council, a project under New York-based nonprofit Spring Street Climate Fund. This raises the total number of likely J-51 eligible buildings in the area to 235, or 17, 757 units.

The project’s director,  Priya Mulgaonkar, said the district has one of the highest concentrations of eligible buildings in the city. District 11 includes greater Riverdale, as well as Bedford Park, Norwood, Wakefield and Woodlawn.

To comply with a city environmental law called Local Law 97, some building owners have to make capital improvements to reduce greenhouse gas emissions from their buildings and help counter climate change. The city sets emissions limits, owners determine improvements needed to meet those limits, and then report their annual emissions to the city’s department of buildings. The department can issue civil penalties for exceeding limits.

Because co-op residents are shareholders in their buildings, they bear the costs of renovations through maintenance charges or assessments. Improvements could include upgrading lighting systems, installing green roofs or solar electricity systems, or replacing fossil fuel heating with heat pumps, according to the city’s department of buildings.

To qualify for the tax break, co-ops and condos must fall below an average assessed value. Currently, that value cannot exceed $45,000 per unit, but Sanchez’s bill would raise the cap to $60,000 per unit, with annual adjustments for inflation.

The bill would also extend the program through 2036 and allow eligible building owners to recover up to 100 percent of reasonable costs — an amount the city decides a project should cost — over 20 years, compared to 70 percent under the previous program.

In May, The Press reported 230 people in Riverdale and beyond felt rising local law compliance costs were a “severe financial strain,” disproportionately affecting middle-class and older residents. These individuals signaled their discontent by signing onto an online petition started by North Riverdale resident Aaron Sidlo. The number of signatures has since jumped to 314.

In one instance, Riverdale Avenue co-op resident Alicia Peralta said last July her building had to increase its maintenance fees by 12 percent, or $180 per month for a one-bedroom apartment. Peralta told The Press in May this was in part due to refinancing the building’s mortgage, but mostly to cover local law-related capital improvements.

Sidlo, who lives in a Fairfield Avenue co-op that would be eligible for the extended J-51 program, said he needs to see how meaningful a difference it makes before it earns his full endorsement. Still, it’s a step in the right direction, he said.

“Every little bit helps,” Sidlo said. “I hope the legislation is broad enough that it will help anyone that might be struggling.”

Spuyten Duyvil resident Wendy Seligson was enthusiastic about the potential of the program. She lives in an eligible co-op on Kappock Street and is also on the steering committee of nonprofit Jewish Climate Action Network’s New York City branch.

“It’s really exciting to feel this connection between J-51, a better building and making the building sustainable for ourselves and for the planet,” Seligson said.

After about 15 years working in climate and affordability advocacy, Mulgaonkar said the bill is the least controversial she’s worked on, and she’s optimistic it will become law quickly.

Local elected officials were similarly confident.

In an Aug. 13 news release from the Green Co-op Council, Council member Eric Dinowitz expressed his support for the bill. He said it empowers more than 10,000 north Bronx families in co-ops. Without an extension, thousands of buildings could lose the opportunity to save money on repairs, Dinowitz said.

Sanchez, who is also the chair of the city council’s committee on housing and buildings, said in the release the bill could reach up to 300,000 co-ops and condos across the city. It would also help preserve and retrofit the city’s aging building stock in the face of housing and climate crises, she said.

Louise Yeung, chief climate officer with the New York City Mayor’s Office of Climate and Environmental Justice, told The Press in a statement the administration is excited to see Sanchez’s bill.

“By supporting energy efficiency, electrification and other critical improvements, J-51 can help middle-class co-op and condo owners cut emissions and energy costs to meet compliance with Local Law 97, improve indoor comfort and air quality, and move us toward a more affordable and sustainable New York City,” Yeung said.

By press time, the bill had 23 sponsors. A public hearing where residents can share their thoughts or ask lawmakers questions is scheduled for Sept. 9, at 10 a.m. on the 8th floor of 250 Broadway, in Hearing Room 1.