The Real Property Tax Exemption known as 485-x was created in 2024 and offers a property tax exemption to qualifying rental and homeownership (i.e., for-sale condominium and cooperative) developments. To be eligible, among other requirements, a project must commence construction no later than June 15, 2034, and complete construction by June 15, 2038.
What Are the Proposed Changes for Homeownership Projects?
Currently, homeownership projects must have deeds executed and recorded for every dwelling unit before the project can file a 485-x application. This requirement has created practical timing problems, since applications must be filed within one year of completion of construction.
Under the proposed rule, homeownership projects would be permitted to file their application once at least 50 percent of units have executed purchase contracts, rather than waiting for all units to close. Full proof of sale for every unit would still be required before benefits are granted.
Why It Matters
With this change, the 485-x exemption program’s requirements would be consistent with the practice under prior tax benefit programs, and developers may have an easier time meeting certain application deadlines without being held up by lagging unit sales.
Public Comment Opportunity
HPD will hold a public hearing on Tuesday, June 30, 2026, from 11:00 AM to 12:00 PM, via Webex. Written comments may be submitted through June 30, 2026, via the NYC Rules website (rules.cityofnewyork.us) or by email to rules@hpd.nyc.gov. Those wishing to speak at the hearing must sign up by June 29, 2026, at 5:00 PM.
Contact Us
Reach out to your BBG attorney of record or contact us here to discuss the City’s property tax exemption programs and how this proposed change may affect a current or planned project.
Written by: Jason Hershkowitz and Frank D. Baquero, Administrative Law Practice.
