QUESTION
What factors contributed to the decline in usage of the J51 program since the early 2000s?
0:27:47
·
92 sec
The Deputy Commissioner explains that a few factors contributed to the decline in J51 program usage since the early 2000s.
- Macroeconomic issues impacting owners' ability to get low-cost loans to do renovation work outside of city programs.
- The J51 program becoming stale, with challenging processes to update costs and regulations.
- The plan is to lay out a methodology for updating costs in the rules to enable more nimble updates.
Pierina Ana Sanchez
0:27:47
Do you have any any explanations or understanding for why there was a decline in usage since the early 2000?
Kim Darga
0:27:54
I think there's a few things.
0:27:55
There's probably some macroeconomic issues there, certainly that impact use.
0:28:00
Right?
0:28:00
For instance, can an owner get a low cost loan to do the work.
0:28:06
Right?
0:28:06
If they can, then they could they don't have any restrictions imposed by the city and participating in a city program.
0:28:14
Right?
0:28:15
So they go out and get a loan, and they may then apply for an MCI increase in order to help cover some of the costs that work.
0:28:23
So there's certainly macroeconomic issues.
0:28:26
I would also say that the program got stale.
0:28:31
The MCI and the costs were because they they the process by which we were able to update them was extremely challenging.
0:28:43
Right?
0:28:43
You had regulations, rules.
0:28:48
Our intent going forward is that we lay out the methodology for updating the CRC in the rules.
0:28:56
You know, we'll go through a public process.
0:28:58
People will be able to see what that methodology is.
0:29:01
But we outline the methodology, and then we can just update it as necessary without going through a brand new rulemaking process or something that would take a lot more work and would make us less nimble.