Council Member Pierina Sanchez speaks on J-51 tax abatement extension
Pierina Sanchez discusses the housing and climate crises, the need to retrofit aging buildings, and the changes to the J-51 program extending it through 2036 and increasing cost recovery to 100%.
Thank you, Majority Leader, and thank you, Speaker.
We are facing a housing crisis and a climate crisis at the same time, and our aging buildings are at the center of both.
These buildings are among our largest sources of greenhouse gas emissions, even as they break down around us.
Elevators are failing, stranding seniors and people with disabilities.
Roofs, boilers, electrical systems, and other critical infrastructure need investment.
And in the Bronx and Queens, we're living the deadly consequences of aging housing and fire hazards.
While government has a responsibility to set high standards for owners to keep buildings safe, protect tenants, and reduce emissions, we must also help owners make the investments that are being asked of them.
The J51 program is one of the city's key financial tools to do just that, with $212.7 million spent by New York City in 2026.
This program helps building owners keep up with the cost of necessary preservation work and upgrades, including installing energy-efficient systems so buildings can comply with Local Law 97.
Earlier this year, the state authorized the city to extend J51 with three key changes.
First, a 10-year program.
This one will go through June 2036.
Second, building owners will now be able to recover up to 100% of the reasonable cost of the rehabilitation, up from 70% in the past.
And finally, co-ops and condos will...
see a raised assessed valuation cap from $45,000 per unit to $60,000 per unit, which may sound crazy to the average person, but remember these are Department of Finance assessed values.
And these changes together bring the program's ability to expand the program's ability to reach 300,000 co-ops and condos citywide.
1015 maintains previous accountability mechanisms and adds new comprehensive reporting to how it's being used so we can continue to improve the program.
I want to thank the Green Co-op Council, State Senator Brian Kavanaugh, and Assemblymember Edward Bronstein for their leadership on this bill in the state, and of course the Housing and Buildings Committee staff and my staff.
And if I, yep, want to thank Dylan Campos, our incredible fellow, for all of his work on this and everything this past year.
Thank you.