In a recent article written by Jake Indursky for The Real Deal, David Shamshovich, partner at Belkin Burden Goldman, LLP and Co-Chair of the Firm’s Tax Exemptions and Zoning Incentives Practice weighed in on the challenges facing rent-stabilized property owners seeking tax relief through the Housing Preservation Opportunities (HPO) program administered by the New York City Department of Housing Preservation and Development (HPD).
The piece, “A Tax Exemption for Rent-Stabilized Portfolios Hasn’t Been So Helpful,” highlights how HPD deferred all 75-plus applications for Article XI property tax exemptions under its HPO program until February 2026, citing limited staff capacity and a significant backlog. The program offers up to 40-year tax exemptions for rent-stabilized portfolios with shrinking cash flows but requires strict compliance with affordability and preservation conditions.
David emphasized both the program’s value and its current shortcomings, saying, “It’s a good deal for the city, and it saves these buildings and preserves them, but if you don’t have bodies to process them, then they’re essentially unhelpful.”
The delay underscores a critical tension in New York’s housing policy. While Article XI is intended as a lifeline for rent-stabilized owners facing rising costs and regulatory constraints, HPD’s staffing shortages are undermining the program’s effectiveness in the near term. With insurance, utilities, and interest rates climbing, and a possible rent freeze looming, applications for this type of tax relief are likely to surge, further testing the city’s capacity to deliver on its preservation goals.