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J-51 Tax Incentive

Program (?) J-51 Tax Incentive
Abbreviation J-51
Program Description

The J-51 Tax Incentive program is an as-of-right tax exemption and abatement for residential rehabilitation or conversion to multi-family housing. Eligible projects for this program include: HPD- or privately-financed moderate and gut rehabilitation, privately-financed and governmentally-assisted major capital improvements to multiple dwellings, and conversions of lofts and other non-residential buildings into multiple dwellings. The tax benefit is a 34-year (30 years full tax benefit and then an additional four-year phasing out of the program) or 14-year (10 years tax benefit and then an additional four-year phasing out of the program) exemption from the increase in real estate taxes resulting from the work. Affordable housing projects generally get the 34-year exemption, while other projects receive the 14-year exemption. In addition, existing real estate taxes receive an abatement of up to 8.3 percent or 12.5 percent of the cost of the work each year for up to 20 years. Upon completion, all rental units become subject to rent regulation for the duration of the benefits. In rental buildings, the landlord must also waive 50 percent of the rent increase that would otherwise be allowed under Rent Stabilization as a result of the work.

Benefit Classification (?)  
Supply or Demand Supply
One-Time or Ongoing Ongoing
Benefit Type (?) Property Tax Incentive
Government Agency (?) NYC Dept of Housing Preservation and Development
Program Information (?)  
Scale Very Large Scale (over 10,000 units produced)
Timeframe 1955-Present
Developer/Owners (?) For-Profit, Non-Profit
Property Information (?)  
Building Type Multi-family
Construction Type Rehabilitation
Occupant Tenure (?) Rental
Occupant Income Restrictions (?) Varies
More Information NYC HPD
Public Advocate's Office of New York City
Available on CoreData.nyc? Yes
Last Updated June 2018
Data Source New York City Department of Finance
CoreData.nyc Notes

All unit level data is aggregated to the property level. Data from New York City Department of Finance accessed December 2017.

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