The Daily Dirt: Debating a J-51 reboot

"The property tax break is available to certain multifamily properties, condos and co-ops that undergo renovations. Both the governor's and the senator's proposals would revive the program for 10 years, rather than the typical four-year window provided in previous years. The value of the tax break under both would be increased to as much as 100 percent of what the city considers a reasonable price for various repairs."

"Kavanagh's bill, which he first introduced last year, differs from the governor's in a few key ways. For one, it widens eligibility to include buildings where at least 90 percent of the units are rent-regulated. That seems to be a nod to criticism that the current program's parameters close out buildings in need."

"Under the current program, the abatement is limited to buildings that are 50 percent affordable, owned by limited-profit housing companies or that receive substantial government assistance. The governor's proposal leaves those parameters intact. The bill also seeks to change eligibility for condos and co-ops, with Kavanagh's increasing the threshold to $75,000, allowing for annual increases based on inflation."

The J-51 property tax abatement program, which benefits multifamily properties, condos, and co-ops undergoing renovations, expires this year. Governor Hochul and Senator Brian Kavanagh have each proposed reviving the program for 10 years instead of the typical four-year window. Both proposals increase the tax break value from the current 70 percent cap to as much as 100 percent of the city's reasonable repair costs. However, their proposals differ significantly: Kavanagh's bill expands eligibility to include buildings with at least 90 percent rent-regulated units, addressing criticism that current parameters exclude buildings in need. Kavanagh also raises the condo and co-op eligibility threshold to $75,000 with inflation adjustments, while Hochul proposes $60,000. The governor's proposal maintains existing affordability requirements, whereas Kavanagh's seeks broader inclusion.

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