Albany Passes J-51 Housing Reform

ALBANY-As part of legislation intended to provide property tax relief to homeowners in New York City, the New York State Legislature on Monday enacted the most fundamental overhaul to the J-51 tax abatement program in nearly two decades. The focal point of the J-51 reform is to increase the city’s stock of affordable housing. The measure now goes to Gov. Andrew Cuomo for his signature.

The J-51 overhaul is aimed at reviving a state program that expired at the end of 2011. Under the new proposal, tax benefits will no longer be available to developers that are converting commercial buildings to residential use unless those conversions receive “substantial governmental assistance,” according to a release. In other words, eligibility means participating in programs aimed at preserving or creating affordable housing.