The tax abatement reduces existing taxes by a percentage of the Certified Reasonable Cost (CRC)of the work performed.

The Tax Incentives Unit calculates the CRC as the lesser of actual cost and the amount set forth on a cost schedule provided in the Rules. In some cases, the cost allowance may be lower than the actual cost.


The J-51 Program provides real estate tax benefits to owners of residential real property who make capital improvements to their properties. The Program always grants tax abatement benefits and some projects may receive a tax exemption ,as well.

A. Eligible Projects

1. Listed MCIs to Multiple Dwellings. This general, catch-all category includes major capital improvements listed in the Rules made to buildings containing three or more separate dwelling units. Multiple Dwellings include rental buildings, cooperatives and condominiums.

2. Moderate Rehabilitations of Multiple Dwellings.

B. General Limitations onProject Eligibility

1. Project Must Be Completed Promptly. For a project to be eligible for J-51 benefits, it must be completed within 30 months after it begins.

2. Building Must Not Be Receiving Other Tax Benefits for the same improvement.

3. Building Must Not Be in Arrears for real estate taxes, water or sewer charges, or other municipal charges.

4. Building Must Not Have Building Code Violations.

5. All apartments must be rent stabilized under the J51 program.

C. After Work Is Completed

1. Applications can be prepared and submitted to HPD only after the completion of all work on a project and must be submitted to HPD on prescribed forms.

2. Applications may be filed with the HPD only during the following time periods:

February 1 to March 15 May 1 to June 15

August 1 to September 15 November 1 to December 15