Co-ops and condo will have expanded opportunities for tax abatements under a new law signed earlier this month by the Governor, Senator Toby Ann Stavisky and Assemblyman Edward C. Braunstein announced.

The J-51 tax exemption, which expired on June 30, 2019, permitted cost-of-living increases for the qualifying assessed value (AV) threshold up to $35,000 AV. Over time, cost of living increases have raised the eligibility threshold to a level right below $35,000 AV. This new law raises the cap to $40,000 AV to allow cost-of-living adjustments to move forward, thus preventing more units from falling out of the program.

The program was enacted sixty-five years ago to encourage older rental properties to install hot water plumbing. Co-ops today have utilized the program for everything from roof repairs to electrical improvements to window replacements.

The Senate sponsor, Senator Toby Ann Stavisky, said, “I am delighted that the Governor signed our bill. This will enable middle class co-ops and condos to try to keep maintenance costs down when repairs and renovations are necessary.”

“Over time, as assessments continue to rise, more and more co-op units have fallen out of the J-51 program,” said Assemblyman Edward Braunstein. “Our legislation, signed into law by Governor Cuomo, extends the J-51 program and increases the assessed value cap from $35,000 to $40,000, helping middle-class families afford the cost of capital improvements.”

Warren Schreiber, the Co-President of the Co-op and Condo Council, said, “The J-51 program makes it possible for housing co-ops to maintain and improve their properties. If not for this program the entire financial burden of capital improvements would fall on the shoulders of middle-income shareholders. Extending the J-51 program will help affordable co-op housing to remain affordable.”

Bob Friedrich, President, Glen Oaks Village, stated, “The J51 tax exemption program is an important component in helping to keep our affordable housing stock in good condition for its working class residents. Glen Oaks Village is the largest garden apartment co-op in NY and I am happy to have worked with Senator Stavisky and others in making sure this important legislation was renewed. I look forward to continuing our work to make sure eligibility thresholds are set appropriately so that more middle class co-ops become eligible for this important program.”