QUESTION
What properties lost their J-51 tax benefits over the last 10 years and why?
0:20:59
·
135 sec
The council member asks how many buildings or properties lost their J-51 tax abatement or exemption during the benefit period over the last 10 years and the reasons for losing the benefits.
- The deputy commissioner does not have specific data on the number of properties that lost J-51 benefits in the past 10 years.
- However, there have been some instances where compliance issues led to revocation of benefits, though limited in number.
- Under the old J-51 program, revocation was the main enforcement option for non-compliance.
- The new program allows additional enforcement options like fines, requiring affordable units, and extending the compliance period.
- HPD has created a compliance team to better operationalize enforcement of tax incentive programs.
Pierina Ana Sanchez
0:20:59
So next, a few questions are more in vain of, you know, more in line with some of the criticisms that we've heard from advocates.
0:21:07
Regarding enforcement, as I mentioned in my testimony.
0:21:10
So just for sake of background, how many buildings over the last 10 years or how many properties over the last 10 years that were approved for the J 51 abatement and exemption, lost the tax benefit during the abatement or exemption period.
0:21:24
And if so, why?
Kim Darga
0:21:28
So, unfortunately, I don't have that information.
0:21:34
Tricia and I have been overseeing this program for a couple years.
0:21:37
We cannot speak back.
0:21:39
We do know that there have been some instances where we have known compliance issues of revocation.
0:21:46
They've been fairly limited.
0:21:48
We are actually and I and I would say in part, like, our enforcement options were really limited in the old program.
0:21:57
It was really if there was noncompliance, the option was revocation.
0:22:03
Right?
0:22:04
The new program, we're actually really one of the things we're most excited about is that there are wider array of enforcement options available to the agency.
0:22:13
So we not only have the ability to revoke as we have had in the past, but we can also impose fines for noncompliance.
0:22:23
We can require an owner to add affordable or rent stabilized units.
0:22:29
Rather, we could add the time for compliance Right?
0:22:34
To extend the period of clients.
0:22:39
And we are starting to think about how we would actually operationalize some of those new enforcement provisions that we have.
0:22:48
We've had the benefit in the last fears of having a compliance and enforcement team that we created within the office of development that's focused on other as of right tax exemption tools.
0:23:01
And so we now have some models for how we would actually be able to operationalize compliance and review on a larger scale.
Pierina Ana Sanchez
0:23:13
Got it.
0:23:14
Can you can you just for a moment, share a little bit more about that new function.