The New York City Department of Housing Preservation and Development (HPD) has proposed new rules for the implementation of the real property tax abatement program passed by the New York City Council in December 2024. The new program, which replaces the former J-51 Program, is known as the J-51 Reform Program or “J-51 R”.
Like its predecessor, J-51 R provides a tax benefit for alterations and improvements made to eligible, existing multiple dwellings. To be eligible, rehabilitation work must have been completed after June 29, 2022 and on or before June 29, 2026. Among other things, the proposed rules:
- Specify particular eligibility requirements;
- Set forth application procedures;
- Provide for publication of a Certified Reasonable Cost Schedule; and
- Establish certain enforcement protocols.
Interested parties can comment on the proposed rules by:
- Submission of comments through the NYC rules Web site at https://rules.cityofnewyork.us;
- By email to rules@hpd.nyc.gov; or
- By regular mail to HPD Tax Incentives Program, 100 Gold Street Room/Floor: 8D-09 ; New York, New York 10038.
All written comments must be submitted before March 25, 2025. A public hearing will also be held on the proposed rules on March 25, 2025. The public hearings will be available exclusively online. Interested parties may give oral comments on the proposed rules, but those interested in speaking should sign up to do so by March 24, 2025.
Importantly, applicants for J-51 R benefits must file an application with HPD on or before April 30, 2025, if the project completed construction on or before December 30, 2024, and within four months of the completion date, if the project completed construction after December 30, 2024. HPD has published and is accepting applications, but it will not review those applications until after the proposed rules have been finalized and adopted.
We believe that the requirements for filing under the “J-51 R”, as proposed to-date, will be more onerous than the former J-51 program. We hope that as the hearing process continues, there will be a realization that the impediments will be significantly reduced. BBG will be sending out a further summary once the final rules are finalized and adopted.
For more information, please contact your Belkin Burden Goldman, LLP attorney.
Written by: Anthony Morreale, Partner, Administrative Law Department
