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QUESTION

What properties lost their J-51 tax benefits over the last 10 years and why?

0:20:59

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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.

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