The J-51 tax incentive is an as-of-right tax exemption and abatement for residential rehabilitation or conversion to multiple dwellings.
*Important Program Update: The J-51 Program has Expired for work completed after 6/29/2020
The statutory deadline for completion of work eligible for J-51 benefits was June 29, 2020. Any work completed after that date is not currently eligible for the J-51 benefits. This means that only work completed by June 29, 2020 is eligible for J-51 benefits.
In the absence of further State and City legislation, although HPD will continue to accept J-51 applications, it will not process any applications for work that was completed after June 29, 2020. The $500 application fee is still required to be submitted with your application, and is non-refundable regardless of whether the law is changed or your application is approved.
Please also be aware that even if the law changes to extend the J-51 work completion deadline, your application must still satisfy all other eligibility requirements. This includes applicable application filing deadlines that you may fail to meet should you choose not to submit your J-51 application at this time.
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Eligible projects that completed construction before December 31, 2011 include:
Eligible projects that complete construction on or after December 31, 2011 include
Time requirements for projects that complete construction before December 31, 2011:
Time requirements for projects that complete construction on or after December 31, 2011:
Benefits granted include:
Privately-financed projects in Manhattan south of 110th Street and co-ops and condominiums generally receive some limited benefits.
All rental units become subject to rent stabilization or rent control for the duration of the benefits. In rental buildings, the landlord must also reduce the MCI rent increase allowed under rent stabilization as a result of the work, by a portion of the value of the tax abatement. The rent is temporarily reduced in the MCI proceeding or at a later date in a Tax Abatement Modification Proceeding. The rent is restored at the end of the tax abatement period.
The developer applies to Tax Incentive Programs of HPD. Projects receiving governmental assistance may apply for temporary benefits during construction/rehabilitation. All other projects may apply after completion of work, but not more than four years after commencement of construction. Applications must be completed within two years of the filing date. HPD issues Certificate of Eligibility. The Department of Finance (DOF) implements the benefits.
J-51 is governed by Real Property Tax Law §489 and Administrative Code §11-243 (collectively, Laws) as well as Chapter 5 of Title 28 of the Rules of the City of New York (Rules). In the case of any inconsistency between the Laws and the Rules, the Laws always govern. It is therefore essential to always consult the Laws and not merely rely on the Rules.
We call your attention to the following provision of the Laws because it is inconsistent with the Rules. You should therefore rely strictly on this provision of the laws (Administrative Code §11-243(d)(8)(b)(ii)), and not on the corresponding section of the Rules (28 R.C.N.Y. §5-06(d)(4)).
Administrative Code §11-243(d)(8)(b)(ii) provides that:
(ii) Notwithstanding any other provisions of this subparagraph, and in addition to all other conditions of eligibility for the benefits of this section, the availability of abatements pursuant to subdivision c of this section for any multiple dwellings, buildings or structures not owned as a condominium or cooperative, except for multiple dwellings in which units have been newly created by substantial rehabilitation of vacant buildings or conversions of non-residential buildings, shall be conditioned on the assessed valuation of such multiple dwelling, building or structure, including land, not exceeding an average of thirty thousand dollars per dwelling unit at the time of commencement of the alterations or improvements, provided, however, that such average shall not exceed $40,000 per dwelling unit at the time of commencement of the alteration or improvement for alterations or improvements commenced after the effective date of this local law, which added this.
HPD’s rule amendments eliminate the current restrictive filing periods for submitting J-51 applications to HPD, and allow applicants to file applications at any time of year.
Rule Amendments Regarding Filing Procedures for J-51 Tax Benefits
Effective Date: November 23, 2017
HPD’s rule amendments conform the proof of the applicant's actual expenditures required as part of the application for J-51 benefits to the relevant professional standards for Certified Public Accountants. The amendments allow Certified Public Accountants to provide HPD with satisfactory evidence of the J-51-related cost of construction while avoiding any conflict with professional standards by using terms consistent with the relevant professional standards for “attest engagements.”
Rule Amendments Regarding Certification of Costs for J-51 Benefits
Effective Date: November 23, 2017
How to Apply
*Important COVID-19 Update*
In light of the current COVID-19 outbreak, HPD is authorizing alternative means of application submission and fee payment. See the About Tax Incentives webpage for more information. Contact J51_customer_service@hpd.nyc.gov with any questions.
You may apply to J-51 by submitting the completed application and all required forms. There is a $500 application fee. Please submit the completed application to:
100 Gold Street Room 8-C10
New York, NY 10038
Instructions and guides:
If you are applying for J-51 benefits for lead-based paint hazard abatement, use the following forms:
Instructions and guides:
Contact us at J51_customer_service@hpd.nyc.gov.
Walk in hours and appointments are suspended until further notice.