The Real Deal
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.