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Metropolitan Realty Exemptions In A Nutshell

Metropolitan Realty Exemptions Inc. are leading experts in NYC tax abatement filings. For the past 20 years our firm has serviced property owners and developers as a one-stop shop for all your property tax needs.

Working with clients, and getting their needs met is our specialty. Metropolitan Realty prides itself on providing the very best in customer satisfaction.

Introducing MRE Tax Programs

At Metropolitan Realty Exemptions Inc., we pride on servicing our clients for the past twenty years in all their property Tax Incentive Program filing needs. We understand the effect and burden of the property taxes liabilities following completion of construction due to increased improved value, coupled with complicity of developing a new building or conduct an alteration of an existing building, we are therefore committed in making the property tax filing as easy as possible.

Important to note that some of the property Tax Incentive programs must be filed prior to the issuance of the NB/Alteration permits, in addition the planning of the layout or unit mix of the building will affect the eligibility and maximizing the tax incentive benefits. Therefore, it’s imperative to contact our professional staff at “Metropolitan Realty Exemptions” during the planning stages to insure maximum benefits.

Our staff will guide you with the outmost professionalism on how to proceed with your planning and tax incentive filings, which will result in huge tax breaks/benefits for your building.

Our Services

421-a(16) Affordable New York Housing Program

Offered For:
New Construction Residential buildings, or Existing building adding more than 50% of square footage

The 421-a(16) Affordable New York Housing Exemption program is a partial tax exemption available for new buildings constructed throughout the five boroughs, with a minimum of 6 residential units. In order to qualify for the abatement, 25-30% of the units must be allocated for affordable housing in accordance to one of three options available.

See below a detailed chart of the three options available.

Option A

• 25% of the units must be affordable: at least 10% at up to 40% of AMI, 10% at up to 60% of AMI, and 5% at up to 130% of AMI; and

• the project cannot receive any government subsidies other than tax-exempt bond proceeds and 4% tax credits.

Option B

• 30% of the units must be affordable: at least 10% at up to 70% of AMI and 20% at up to 130% of AMI.

Option C

• at least 30% of the units must be affordable at up to 130% of AMI;

• the project cannot receive any government subsidies; and • the project cannot be located south of 96th Street in Manhattan or in any other area established by local law.

The affordable units must be marketed with the New York City Housing Preservation and Development (HPD) as detailed below. The 421-a exemption will retain the property taxes based on the Base Year (A year prior to construction) Assessed Value for up to 3 years during construction and for a 35-year period post construction.

Affordable Marketing Agents

At Metropolitan Realty Exemptions we have an affordable marketing division under the name "Reside New York" which acts as an approved HPD Affordable Marketing Agency.

We service New York City's developers and individuals qualifying to apply for the 421-a(16) Affordable New York Housing Program detailed above. With our advanced cutting-edge software system and professional staff, we are recognized to be the number one choice when it comes to marketing affordable units in New York City. We will bring you expeditious results in getting your affordable units rented in a timely manner, taking you from the first step of getting your building assigned with HPD affordable market unit up to the successful leasing of the units to qualifying applicants. “Reside New York” works together with rental brokerage firms in New York City to get qualifying tenants in a timely manner.

Find out more at: www.residenewyork.com

J51

Offered for:
Multi Family Residential Alterations

The J51 tax incentive program is designed for renovations and conversions on existing residential buildings. The J51 program provides 2 distinct benefits:

Tax Exemption

The J51 exemption portion effectively freezes a building’s increase in assessed value, resulting from the alteration or improvement of a building or structure, except insofar as the gross cubic content of the building is increased thereby and for the prorated commercial area of the building. The exemption will last for a period of fourteen years, with 100% exemption for ten years followed by a 20% phase-out in each of the succeeding four years.

Tax Abatement

The J51 abatement benefits serve to reduce the property’s tax liability otherwise payable. For renovation of a residential building, the abatement is calculated and determined based on 90% of the lesser of: 1) the “Certified Reasonable Cost” (CRC) of the eligible alteration or improvement as established by the NYC Department of Housing Preservation and Development (HPD); or 2) a maximum allowance of $15,000 per one-bedroom apartment with a per-apartment increase of $2,400 for each additional bedroom. Resulting abatement benefits are reduced by ineligible portions of the converted structure. The total approved abatement amount is then administered at 8.33% per annum up until 90% of the CRC is exhausted, for no more than 20 years.

Industrial Commercial Abatement Program (ICAP)

The Industrial Commercial Abatement Program (ICAP) is designed for new buildings or alterations on commercial properties.

The ICAP tax abatement will offset part of the increase in the properties assessed evaluation resulting from the construction of the building for a period of up to twenty-five years, depending on the use of the commercial.

ICAP for New Buildings:

If an ICAP is being filed on a vacant land for the purpose of developing a new building, the entire increase due to the construction will be offset by the ICAP for the life f the program.

ICAP for Alterations:

In the event of a rehab alteration of an existing building, the ICAP will freeze the taxes to the current as-is assessed value of the property prior to construction or renovation.

As per the rules and regulations by the NYC DOF the preliminary filing must take place prior to the issuance of the permits. Failure to filing prior to pulling permits will result in the loss of the ICAP program.

In order to be eligible, to benefit from the above-mentioned program the NYC Dept. of Finance requires project in excess of 2.5 million in hard cost to comply with the Dept. of Labor Service’s requirements. See below a brief description of their requisite filings.

Dept. of Labor Services Requirements

As per the Rules & Regulations by the Division of Labor Services (DLS) and in accordance with the obtainment of the ICAP benefits for projects for which the hard construction costs are $2.5 million or more, it is required compliance with federal, state, and local equal employment opportunity obligations.

The requirements include the submission of an Employment Report, for the owner, containing information of the employment policies and practices and workforce composition. Subsequently, the DLS will analyze the report to determine if the contractor maintains nondiscriminatory hiring and employment practices. In addition, it is required that every subcontractor, whose contract is less than a million, submits a less than a million affidavit. If the amount remitted to the subcontractor exceeds $1 million, an employment report will be necessary, as well as monthly payroll records for all of his employees.

The Dept. of Labor Services also requires the solicitation of minority firms (MWBE) for each trade. 3 minority firms should be solicited for each trade.

We at Metropolitan Realty Exemptions will guide you through the entire process up to the obtainment of the DLS approval letter.

Offered for: New or Alterations for commercial projects:

The Industrial and Commercial Abatement Program (ICAP) reduces a portion of the increase in real property taxes due to new construction, modernization or rehabilitation of industrial/commercial buildings, by providing up to a maximum of 25-year property tax abatements depending in the type of commercial usage for qualified projects.

Inclusionary Housing Program

Offered For:
New residential buildings located in specific mapped areas

The Voluntary Inclusionary Housing Program (VIH) provides bonus floor area if the developer chooses to create permanently affordable housing. A maximum of 20% of the Residential Floor Area is required to be set aside to tenants at 80% of the Area Median Income (AMI). In order to qualify for the bonus floor area, the project must be located in the Inclusionary Housing Designated Area.

The Mandatory Inclusionary Housing Program (MIH) requires permanently affordable housing to be provided in order to obtain alteration or new building permits from the Dept. of Buildings. The MIH affordable housing options are detailed below; though, each area will have specific options applied. The maps and applicable options can be seen on Appendix F of the NYC Zoning Resolution.

The MIH affordable housing options:

• Option 1: 25% of the Residential Floor Area needs to be set aside at a weighted average of 60% AMI, with at least 10% set aside at 40% AMI

• Option 2: 30% of the Residential Floor Area needs to be set aside at a weighted average of 80% AMI

• Option 3 (Deep Affordability Option): 20% of the Residential Floor Area needs to be set aside at a weighted average of 40% AMI

• Option 4 (Workforce Option): 30% of the Residential Floor Area needs to be set aside at a weighted average of 115% AMI, with a least 5% set aside at 70% AMI and 5% set aside at 90% AMI

• Affordable Housing Contribution – developers of projects that have less than 26 residential units and 25,000 sq. ft. of Residential Floor Area have the option of contributing to the affordable housing fund instead of providing affordable housing.

• Projects with no more than 10 residential units and 12,500 sq. ft. of Residential Floor Area are exempt from the MIH requirements

The IH units may be used to satisfy other affordable housing program requirements.

Our firm is actively involved in each project, from the designing phases through issuance of HPD’s Completion Notice. We work with HPD and the entire development team to ensure the smoothest & most efficient approval process.

To check if the Inclusionary Housing Program applies to your property, click here.

The information provided is for informational purposes. There are additional requirements and considerations involved. Feel free to reach out to our Inclusionary Housing consultants to discuss feasibility.

The Inclusionary Housing Program is administered by NYC Department of Housing Preservation and Development (HPD).

MDR Annual Filings

Offered For:
Multi Family Residential buildings

Property owners of residential buildings are required by law to register annually with HPD if the property is a multiple dwelling (3+ residential units) or a private dwelling (1-2 residential units) where neither the owner nor the owner’s immediate family resides.

Building registrations must also be filed annually by September 1st or whenever ownership changes or whenever the information on a valid registration changes (example, new managing agent or site management). HPD uses the contact information supplied in the registration for all official notifications, as well as in the event of an emergency at the property.

Our firm will file the MDR application for you annually and fill out all required documentation.

Nonprofit Exemption

Offered For:
Occupancies used by Nonprofit establishments

The Nonprofit Exemption is designed for properties owned and occupied by a Nonprofit organization and used solely for Nonprofit purposes. The program provides a 100% tax exemption if there are no variations in the occupancy or usage of the property. All Nonprofit Exemptions must be renewed annually in order to retain the benefits. Metropolitan Realty Exemptions assist you in obtaining an exempt real tax liability status.

DHCR Annual Filings

Offered For:
Multi Families Residential buildings.

State Law requires owners of housing accommodations regulated by NYS Rent Stabilization laws to file an annual rent registration with the NYS Division of Housing and Community Renewal (DHCR) and to provide each tenant in occupancy on April 1 with a copy of the registration which pertains to the tenant’s unit. Our knowledgeable staff will guide you through the regulations and requirements and file the applicable DHCR registrations with NYS Division of Housing and Community Renewal.

Over 15000 Projects To Date And Counting

Sample Finished Projects

237 11 Street

Over $900k in annual savings

50 North 1 Street

Around $725 in annual savings

1209 Dekalb Avenue

Over $950k in annual savings

867 Dekalb Avenue

Over $175k in annual savings

806 St Johns Place

Over $125K in annual savings

310 Graham Avenue

Over $152k in annual savings

564 & 566 Sterling Place, Brooklyn

Annual tax savings of approximately 20K, per building. Annual tax liability is $0

1144 Bushwick Avenue, Brooklyn

Annual tax savings approximately 19K. Annual tax liability is $0

1910 3 Avenue, Manhattan

Annual tax savings of approximately 60K. Taxes reduced from 100K to 40K

BP Group DE LLC

Annual Taxes: $985,455 - ICAP Annual Savings: $903,111.

307 RUTLEDGE LLC

Annual Taxes: $186,782 - ICAP Annual Savings: $164,724.

266 BROADWAY LLC

Annual Taxes: $255,045 - ICAP Annual Savings: $239,196.

125 Borinquen Place

22,548 SF in Bonus Floor Area

115 Stanwix Street

16,420 SF in Bonus Floor Area

1007 Atlantic Avenue

10,535 SF in Bonus Floor Area

95 Ross Street

$586,587-credit fully covers the taxes.

66-20 Thornton Place

$269,362–credit fully covers the taxes.

177 Harrison Avenue

$549,074–credit fully covers the taxes.

Latest News

Are you ready to file your tax abatements? Let's Go!

Contact Us

Address: 381 S. 5 St., Suite #1 Brooklyn, NY 11211

Phone: 718-387-3004

Email: info@mretax.com