Landlords are finally getting some love from the de Blasio administration.
The city is preparing a proposal to overhaul a tax break program, in part to make it more appealing to owners of apartment buildings.
Department of Housing Preservation and Development Commissioner Louise Carroll said the J-51 tax break needs to be “right sized” because the incentive hasn’t kept up with the market.
“We’re looking at the program holistically, both as to what would be an appropriate reimbursement for the work done, what would be an appropriate tax exemption to incentivize people to take it and what would be the right tax abatement so that the program works,” she said during a Crain’s event Wednesday.
It’s not clear what the city agency wants to change, but state legislation would be required. A representative for HPD said the proposal will aim to make the benefits “more targeted and cost-effective” for owners while making sure tenant protections are as strong as possible. The agency expects to deliver its proposal to the state Assembly at the start of the next legislative session.
The tax break, which is set to expire next year, is provided to landlords who renovate apartment buildings in exchange for their keeping units rent-stabilized for the duration of the benefit, which can be from 14 to 34 years. In a bill signed by the governor in July, state officials expanded the types of condo and co-op properties eligible for the benefit and extended the J-51 program through June 2020.
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