On February 12, 2025, the New York City Department of Housing, Preservation and Development announced that the online application for the J-51 R program, formally J-51, is now open. Since 2009, the J-51 tax relief program has resulted in the rehabilitation of more than 3,200 buildings, consisting of over 143,000 homes. In December 2024, the City Department of Housing, Preservation and Development created the updated version of J-51, “J-51 R”, available to property owners and tenants.
The goal of this program is to reduce carbon emissions and ensure buildings are well maintained by providing property owners a tax incentive to rehabilitate rent-regulated, cooperative, and condominium buildings.
Properties involved in the J-51 R program must remain compliant with the following requirements: buildings receiving J-51 benefits must remain rent-stabilized during the benefit term; units that became rent-stabilized due to J-51 cannot be deregulated during the benefit term or for the duration of any tenancy that began while the benefit was in effect; and owners may not apply for Major Capital Improvements (MCI) rent increases for work covered under J-51. The Department of Housing, Preservation and Development has expanded enforcement mechanisms to prevent misuse of the program.
The program covers capital repairs including roof replacements, facade repairs, structural stabilization, heating, plumbing, electrical system upgrades, and energy efficiency improvements that lower operating costs for tenants and owners.
For a property to be eligible for J-51 R benefits they must meet the following requirements: at least 50 percent of units are rent-regulated with rents below 80 percent of the Area Median Income (AMI) or rental projects receiving substantial governmental assistance (SGA), Co-ops & Condos where the assessed value per unit does not exceed $45,000, other regulated buildings operated as Mitchell-Lamas or owned by redevelopment companies.
Owners who completed eligible construction projects before December 30, 2024, must apply by April 30, 2025. For projects completed after December 30, 2024, applications must be submitted within four months of completion.
Outgoing First Deputy Mayor of New York City Maria Torres-Springer said, “A fundamental strategy in tackling the housing crisis is housing preservation, and J-51 is a critical tool in our toolbox for making safe, affordable, and high quality building upgrades. The renewed J-51 R meets the moment by supporting building owners to make investment in new and sustainable building systems, all while keeping homes affordable for existing tenants.”
By: Chelsea Ramjeawan (Chelsea is the CityLaw intern and a New York Law School student, Class of 2025.)