HPD now accepting applications:

On 12/18/2024, the New York City Council approved the “J51 Reform” program, to replace the expired J51 program. HPD published the application templates and is now accepting applications, although the program rules have not been adopted by the Agency yet and applications will not be processed until that happens. Certain projects have an application deadline on 4/30/25 (detailed below).

In contrast to the expired J51 program which included a property tax abatement and exemption, the New J51 Reform only offers a tax abatement which will be calculated considering the Certified Reasonable Costs (CRC) schedule associated with the rehabilitation.

Initial eligibility check:

• Post completion, the project must contain 3 dwelling units or more
• For rental projects, at least 50% of the dwelling units in the building are to be rented at no more than 80% of the Area Median Income (AMI)
• For condo projects, the average assessed valuation in effect during the project’s Commencement Date, may not exceed $45,000 including the land value

Applicable deadlines:

Rehabilitation Construction timelines:

• To qualify for the J51 Reform program, the rehabilitation must be complete between 6/29/2022 and 6/30/2026
• Separately, the rehabilitation must be complete within 30 months of the issuance of the initial permit.

Filing timelines:

• For projects that commenced the rehabilitation after 12/29/2024, Notice of Intent must be filed no later than 15 days prior to the start of the rehabilitation.
• Between 180 and 30 days prior to commencement of construction, a Notice to Tenant is to be provided to the existing occupants, if any, informing them of the proposed rehabilitation
• For projects that completed the rehabilitation prior to 12/30/2024, the application must be submitted on or before 4/30/2025.
• For projects that completed rehabilitation on or after 12/30/2024, the application must be submitted within 4 months of the completion date.