QUESTION
What is the cost of the J51 program?
0:26:19
·
87 sec
The Deputy Commissioner explains that the average annual cost of the J51 program over the last 15 years has been around $270 million per year.
- The cost accumulates over time as buildings receive benefits for 15 years
- Some buildings are in the final year, some in the middle, and some just starting the benefit period
- Usage was much higher in the 1990s and early-mid 2000s
- A significant decline in usage has been observed since then
- Future costs are expected to be on par with recent years
Pierina Ana Sanchez
0:26:19
So can you help us understand, so you I did the 9600 properties number for the last 15 years.
0:26:27
Whether it's 15 years or a 10 year period, can you tell us what the cost of the J51 program has been?
Kim Darga
0:26:33
Sure.
0:26:34
So on this is a little complicated.
0:26:36
So bear with me for a moment.
0:26:38
But on average, the annual costs over the last 15 years has about I've been about $270,000,000 a year.
0:26:47
Keep in mind that's not that is a there's a cumulative impact, right, of providing a benefit under program like this.
0:26:59
Because you're talking about buildings during that 15 year period that received a benefit, right, a slide and receive a benefit back to, like, the 19 nineties.
0:27:09
Right?
0:27:09
So, you know, you have some buildings that might be in final year of a benefit period, some that are midway through, and some that are just commencing.
0:27:16
So that is the overall cost of the city on average.
0:27:21
There's been some ebb and flow and use of the program as we discussed during the testimony.
0:27:26
The program was used at a much larger scale.
0:27:29
In the nineties and into the early to mid 2000.
0:27:31
And then has we've seen a very significant, say, pretty significant decline in usage since then.
0:27:39
And we would expect, I think, going forward, that costs will be on par with what we've seen in the past.
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What factors contributed to the decline in usage of the J51 program since the early 2000s?