State Budget Revives J-51 with Expanded Eligibility and Bigger Benefits

Herrick partner, Bruce Cholst, was quoted in Habitat Magazine's Bricks & Bucks column in a piece discussing the extension of the crucial J-51 tax abatement included in the New York state budget. The program, which offsets the cost of major upgrades against a building’s property tax bill, has been renewed for another ten years, covering eligible improvements through June 29, 2036. This is a significant expansion compared to the four-year extensions in previous versions of the program.

"It [confers] a lot more reliability on the program," said Bruce, who was also involved in lobbying for the legislation.

The budget also broadens access to the program. Buildings where the average assessed value of apartments is up to $60,000 are now eligible, an increase from the previous $45,000 cap. A $60,000 average assessed value equates to a sales-based market value of about $550,000. The higher cap means more than 500 additional co-ops and condos are expected to become eligible for the program.

The new average assessed value threshold will be adjusted annually to reflect increases in the Consumer Price Index (CPI). To have the CPI adjustment factored into the legislation also means it is likely baked in for future versions of the program. "It’s very hard to remove an entitlement once it is there," Bruce says. 

Read the full piece in Habitat Magazine here. Access may require a subscription.