Danielle Manley (Urban Green Council) on J51 reauthorization and Local Law 97 compliance

Good afternoon, Chair Sanchez and members of the committee.

My name is Danielle Manley.

I'm the Associate Director for Policy at Urban Green Council.

We're a nonprofit organization based here in New York City, and our mission is to decarbonize buildings for healthy and resilient communities.

We strongly support Mayor Mamdani's commitment to making housing more affordable for New Yorkers.

The mayor's housing plan meets the moment with proposals that build more housing and lower the cost of owning and operating existing buildings.

In particular, Urban Green strongly supports the plan's proposed expansion of the J51 Reform Property Tax Abatement Program, J51R, and your proposal, Intro 1015, being considered today.

J51R is a key tool that helps eligible co-ops, condos, and multifamily buildings afford the capital improvements and maintenance repairs that they need to make.

As you know, it's broadly available for a wide array of projects, and uniquely, J51R helps cover the cost of energy efficiency and electrification projects that support compliance with Local Law 97.

We particularly support Intro 1015 because it helps owners navigate Local Law 97 in the following ways.

First, it expands access to J51R.

Urban Green's data analysis shows that raising the assessed value threshold to $60,000 is going to allow more than 2,000 co-ops and condos that have carbon emissions limits use J51 to recoup costs for local 97 upgrades.

There's over 310,000 residential units in those buildings.

These are the buildings where everyday New Yorkers live, and those owners have been asking for help.

This legislation offers them real help.

The changes now mean that half of all co-ops and condos with carbon emissions limits can use the program.

Second, this legislation extends the J51R program through 2036.

Many building owners and boards are making decisions today about projects to meet Local Law 97's 20 and 2035 limits.

This extension offers them the certainty to plan and finance those long-term capital projects.

Third, it increases the potential tax benefit that can make the difference.

Please conclude.

It increases the potential tax benefit that can make the difference in whether critical upgrades are financially feasible.

And last, it allows the program to evolve alongside Local Law 97 and emerging technologies.

The legislation empowers HBD to consider cost-effective local 97 compliance upgrades, solutions when updating the list of covered projects, and it requires a review of that list at least every two years.

As you probably know, technologies to address energy efficiency and electrification are evolving every day, and this will ensure that New Yorkers can affordably access these emerging solutions over time.

We look forward to working with HPD to ensure that that list reflects those new and lower cost upgrades as they become available.

Finally, I'll close by saying the program is set to expire.

in June of this year.

This update not only aligns affordability and decarbonization, it gives thousands of co-ops and condo owners the peace of mind that J51 will remain available for them in the future.

And so we thank you for your time today.

Thank you, Councilmember Sanchez, this committee, and all council members in support of this legislation.

Thank you.