The reduction could be revived as part of the state budget: Governor Kathy Hochul included a modified version of the program in her executive budget. Senator Brian Kavanagh, chairman of the Senate Housing Committee, has also proposed a renewal of the program.
The property tax credit is available to certain multifamily properties, condominiums and cooperatives undergoing renovations. Both the governor’s and senator’s proposals would revive the program for 10 years, instead of the typical four-year period offered in previous years.
Speaking of similarities between the proposals, the value of the tax credit under both would be increased to as much as 100 percent of what the city considers a “reasonable” price for various repairs (the city publishes a cost breakdown for renovation work that has previously been a source of controversy). The current program limits the value to 70 percent. The value of the annual discount may not exceed 8.33 percent of the renovation costs over the break of up to 20 years.
But Kavanagh’s bill, which he first introduced last year, differs from the governor’s in several key ways. First, eligibility is expanded to buildings where at least 90 percent of the units are rent regulated. That appears to be a nod to the criticism that the parameters of the current program close off buildings in need.
As the program currently stands, the rebate is limited to buildings that are 50 percent affordable, owned by limited-profit housing companies, or that receive “substantial government assistance.” The governor’s proposal leaves these parameters intact.
The bill also seeks to change eligibility for condos and cooperatives. Under the current program, such buildings qualify if units have an average assessed value of $45,000. Hochul’s executive budget legislation increases that threshold to $60,000, while Kavanagh’s raises it to $75,000, allowing annual increases based on inflation.
It remains to be seen to what extent J-51 will be reformed as part of the state budget and to what extent lawmakers will prioritize changes this year. Negotiations are expected to heat up this week with the release of Democratic majorities’ respective single-house budget resolutions.
What we’re thinking about: What is one property-related thing that has been proposed as part of the state budget (or should have been) that you think deserves more attention? Send a message to kathryn@therealdeal.com.
Something we learned: Assembly Member Emily Gallagher hopes the state budget includes funding for a pilot social housing program in Kingston, NY. Gallagher has introduced a bill for the Social Housing Authority in 2024, and thinks a pilot will help inform what adjustments need to be made “before we have a universal program, which is inevitable.”
Elsewhere in New York…
– The CityStore briefly sold coffee mugs with the seal of New York City, declaring Zohran Mamdani the 111th mayor before a historian discovers that the official count did not include the second, non-consecutive term of a 17th century mayor. Gothamist reports that the store now sells mugs describing Mamdani as the 112th mayor and has approximately 275 mugs with the incorrect 111th label in storage.
– During an interview on Monday, Senator Brian Kavanagh said lawmakers are consulting with the Office of Court Administration to calculate the potential costs of an eviction program promoted by the New York Housing Conference. The housing group has called on the state to provide $17 million
— The Alexander brothers were found guilty of all charges in their federal sex trafficking trial. Be sure to check out my colleagues’ extensive coverage of the verdict and what led to it.
Closing time
Residential: The highest residential deal recorded on Monday was $19.4 million for a penthouse at 812 Park Avenue. The Lenox Hill cooperative unit is 5,400 square feet. Serhants Ryan Serhant and Donna Strugatz have the entry.
Commercial: The best recorded commercial deal was $101.1 million for Northern Boulevard 42-02. The store building in Long Island City was a Food Bazaar supermarket and the building is approximately 75,000 square feet.
New on the market: The highest price for a home to hit the market was $46 million for 117 East 70th Street. The Lenox Hill mansion is 12,300 square feet. Brown Harris Stevens Paula and Richard Del Nunzio have the listing.
— Joseph Jungerman
#Daily #Dirt #Debating #J51 #Reboot