Sanchez explains J-51 tax abatement purpose and $212.7 million cost
Sanchez says Intro 1015-A would improve and extend J-51, a tax abatement for eligible multifamily housing including rentals, co-ops, and condos. She calls it a key tool for preservation, energy efficiency, and Local Law 97 compliance, noting the city dedicated $212.7 million to J-51 in fiscal year 2026.
Today, I am proud that the Council will be voting on 1015A, which will do just that by improving and
extending the J51 tax abatement program.
J51 offers a tax abatement for eligible multifamily housing, including certain rental buildings, co-ops, and condos.
It's one of the city's most important financial tools for helping owners to keep up with the cost necessary to preserve and upgrade their properties, including energy efficiency work, so that buildings can better comply with local law 97.
And this is not a small program.
The mayor's report on tax expenditures reports that the city dedicated $212.7 million to the J51 program in the 2026 fiscal year.
That's foregone tax expenditures in service of improving old properties.
This program enables building owners to replace elevators, wheelchair lifts, repair roofing, install energy-efficient equipment, and J51 is only becoming more essential as older buildings continue to deteriorate and
climate change continues to require urgent action.