FOR IMMEDIATE RELEASE
October 14, 2004
MAYOR MICHAEL R. BLOOMBERG SIGNS LEGISLATION EXPANDING J-51 TAX INCENTIVE PROGRAM
Remarks by Mayor Bloomberg at a Public Hearing on Local Laws
"The next bill before me is Introductory Number 318-A, sponsored at the request of our Administration by Council Members Provenzano, Stewart, Weprin, Gonzalez and Quinn. This bill extends J-51 tax exemption benefits for certain alterations and improvements to multiple dwellings, as authorized by the State Legislature and the Governor through Chapter 450 of the Laws of 2003.
"Since 1955, the J-51 Tax Incentive Program has encouraged property owners to upgrade and renovate their buildings by providing both tax abatement and tax exemption benefits for capital improvement. The Program, through the City's Department of Housing Preservation and Development, issues 14 or 34-year tax exemptions on any increase in the assessed valuation resulting from certain alterations, and provides a property tax abatement of between 50 and 150% of the reasonable construction costs for such alteration. HPD estimates that between 70,000 and 100,000 housing units are renovated with the assistance of the J-51 program in any given year.
"Intro 318 extends J-51 tax exemption benefits to newly created residential space resulting from a major expansion of an existing building. While these benefits will be available citywide, buildings north of Chambers Street and south of 110th Street must be receiving governmental assistance in order to qualify for these expanded J-51 benefits.
"Intro 318-A will spur the creation of much needed affordable housing while continuing to provide an essential tax exemption for rehabilitating multiple dwellings throughout our City.
"I would like to thank Council Member Provenzano for sponsoring this local legislation, State Senator Frank Padavan and Assemblyman Brian McLaughlin for sponsoring the necessary enabling legislation in Albany, and HPD Commissioner Shaun Donovan for his leadership on this issue."
Edward Skyler / Jordan Barowitz (212) 788-2958
Watch bill signing in 56k or 300k