REMARKS
Council Member Pierina Ana Sanchez opens hearing on the J51 Tax Program
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4 min
Council Member Pierina Ana Sanchez opens the hearing by detailing New York City's worsening housing crisis, including rising evictions, homelessness, and lack of affordability.
- She highlights the mission of the J51 Tax Program to incentivize building owners to make repairs and upgrades through tax abatements.
- The program aims to increase housing supply and improve living conditions for tenants.
- Sanchez acknowledges Battery City Middle School students from Council Member Martha's district attending the hearing.
Pierina Ana Sanchez
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Thank you, sergeant, and good morning.
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I am council member Perena Sanchez, chair of the committee.
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Let me put this a little closer.
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I've got my 3 cushions to make me look taller, but I gotta pull up the mic.
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Good morning.
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I'm council member beating Asante's chair of the committee on housing and buildings.
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Thank you for joining us today for our hearing on the J51 Tax Program.
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I would like to thank all of our colleagues who are president, president, council member Hudson, council member Abbrelis, and council member Abreio.
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As always, I want to begin by setting the stage.
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New York's intersecting crises of rising evictions, record homelessness, and housing affordability are worsening.
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Most recent income and affordability study by the Rent Guidelines Board released just last month highlights that nonpayment filings in housing court increased by 23% in 2023, while nonpayment cases actually heard increased by 34.5%.
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And the number of residential evictions has risen by 195.4 percent between 20222023, concentrated in communities color and low in modern income communities across the city.
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The HDS, the housing vacancy survey, also showed us earlier this year that we're confronting the lowest vacancy rate on record since the 19 sixties at 1.4%.
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With nearly 90% of unassisted low income households severely rent burden and housing for low cost rentals at a functional 0.
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That means that unless you live in an affordable housing, enough in an affordable apartment in New York City, you basically cannot find one.
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As the demand for housing continues to surge and supply remains severely constrained, low income and working class New Yorkers are leaving in record numbers.
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In turning the path forward, we must increase housing supply, increase New York's ability to afford their home so we can stay and contribute to our city's vibrancy.
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And invest in building upgrades and tenant protections so that tenants may remain safely in their homes.
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That is why we are here today to discuss the J51 tax incentive.
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The J51 program has historically been a tax abatement and tax exemption program.
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It provides tax incentives for building owners to rehab their buildings make repairs and upgrades by providing temporary relief from an increase in annual real estate taxes that would otherwise result from the increase in assessed value of the property due to conversion alterations or improvements.
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In the past, the incentive reduced or eliminated existing real estate taxes usually on both buildings and land based on a percentage of the cost of the work that was performed.
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J51 has existed for about 70 years in various iterations to respond to housing shortages and housing conditions.
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Every few years, the state tax legislation that enables the city council to pass legislation extending the J51 program in New York City within the confines of the state law.
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This fall, Governor Hochul signed in to law the affordable housing rehabilitation program, which allows the city to pass legislation by June 30th 2025 to provide the J51 tax abatement.
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The last J51 extension expired in June 30 2022.
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The Affordable Housing Rehab Program alters the J51 program to try to address concerns raised by advocates over the years.
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Including criticisms over enforcement mechanisms, tenant protections, and the exemption portion of the program.
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When we provide tax breaks, or that reduce the tax collection by the city, we must ensure that the benefit is targeted and fulfills the goals of the program.
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By looking back on how the program has performed historically, we can make changes where necessary to ensure that the abatement program allows building owners to make necessary repairs to their buildings, improve living conditions for tenants, while also providing adequate oversight.
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To that end, we will hear intros number 654 in relation to the abatement of taxation for alterations and improvements to certain multiple dwellings.
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I would link like to thank my team, Sam Cardenas, my chief of staff, Kadeem Robinson, or as my child calls them, Guim Guim Guim, our legislative and communications director, my deputy chief of staff, my deputy chief of staff, as well as the housing and buildings committee staff, Taylor Zaloni, Austin Maloney sorry.
0:05:03
Taylor Zalini, Austin Maloney, sick on the Andrew Bourne Denkrupp and reseeto them.
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I will now turn it to committee counsel to administer the oath.
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I Also, just before we start with the administration.
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I wanna acknowledge that we've been joined by the Battery City Middle School and council member, Martha's district.
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Hello.
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Welcome.