New York City building owners and managers may soon have expanded access to one of the City’s most important tax incentive programs for major capital improvements.
Under a proposal included in Kathy Hochul’s Executive Budget, the J-51 R tax abatement program would be significantly expanded—opening the door for approximately 1,600 additional co-ops and condominiums across New York City to qualify.
What’s Changing?
Currently, J-51 R eligibility is limited to buildings where the average assessed value per apartment is $45,000 or less. The proposed expansion would raise that threshold to $60,000, allowing many more properties to participate, and signals strong support for the program at the state level—an important step for buildings facing rising capital repair costs.
Why This Matters for Your Building
The J-51 R program helps offset property taxes for buildings undertaking substantial capital projects, including:
- Structural repairs and façade work
- Roof replacements
- Building envelope improvements
- Mechanical, electrical, and plumbing (MEP) upgrades
- Code compliance and life-safety improvements
With construction costs continuing to rise, expanded access to J-51 R could provide meaningful financial relief and help boards move forward with long-deferred projects.
How The Falcon Group Can Help
At The Falcon Group, we work with boards, property managers, and owners to ensure capital projects are properly planned, scoped, and budgeted—positioning buildings to take full advantage of incentive programs like J-51 R.
Our team can assist with:
- Evaluating project eligibility under the proposed J-51 R expansion
- Developing comprehensive project scopes aligned with program requirements
- Preparing realistic construction cost estimates and capital budgets
- Coordinating engineering assessments, reserve studies, and phased repair planning
- Supporting boards through planning and implementation to reduce financial risk
Start Planning Now
While the J-51 R expansion is still a proposal, proactive planning is critical. Buildings that understand their conditions, costs, and funding options will be best positioned to act once changes are finalized.
Contact The Falcon Group today to discuss how this proposed expansion may impact your property and how we can support your next capital project from initial evaluation through execution.