NEW YORK, NY — Senate Housing Committee Chair Brian Kavanagh, Assemblymember Ed Braunstein, legislative colleagues, and a broad coalition of property owners, and housing and environmental advocates, today called for enactment of S8170A/A10549, to renew and strengthen the J-51 program, a longstanding New York City tax incentive currently scheduled to expire in June 2026, that supports capital improvements, repairs, and efficiency and sustainability upgrades in eligible rent-regulated rental buildings, co-ops, and condominiums.

“Multi-family housing is the backbone of our city’s affordability, and many owners need real support to make repairs and upgrades to keep buildings safe and livable, and to improve their energy efficiency and reduce operating costs, including many buildings that are required by local law to reduce their emissions,” said Senator Brian Kavanagh. “In 2023, we worked with the City to extend the program for three years and to cover environmental sustainability and resiliency improvements that were not previously eligible. Now we need to extend the program again, expand eligibility, reduce barriers to participation, and provide more generous support. I thank Assemblymember Ed Braunstein for his partnership on this issue over the years, all of our supportive colleagues in the Legislature, Governor Kathy Hochul for her focus on the issue in her Executive Budget proposal, and all of the property owners and environmental advocates working with us to get this done.” 

"I have been a longtime supporter of the J-51 program, which offers residential buildings essential tax relief to support capital repairs. Co-ops are a cornerstone of middle-class housing in Queens, and the Governor's proposal to renew and expand the J-51 program is a great step to help preserve affordable homeownership in New York City. In an effort to include even more middle-class co-ops in the program, I recently introduced A.10549, which builds on the Governor's proposal and expands the program further. I thank Senator Kavanagh for his partnership on this issue and will continue to work to secure J-51’s expansion and renewal this Session,” said Assemblymember Ed Braunstein.

The J-51 program helps offset the costs of capital improvements such as heating system replacements, elevator modernization, plumbing and electrical upgrades, energy efficiency measures, and other critical building repairs. The proposed legislation, S8170A/A10549, would extend the program to 2036, allow building owners to recover 100% of approved project costs (rather than the current 70% maximum), and require biennial updates to the program’s cost schedule to keep pace with real-world construction costs. It would also reduce application fees and allow them to be recoverable as part of the project cost. For co-op and condo owners, the maximum average assessed value for a building to be eligible would increase from $45,000 to $75,000 per unit and would be adjusted annually for inflation. (The market value of these units is generally several times higher than the assessed value.) For rental buildings, the legislation would make it easier for buildings to qualify when 90% or more of their apartments are rent-regulated. New transparency and reporting requirements would ensure the program is working as intended and delivering results for New Yorkers.

The FY26-27 Executive Budget proposal included a ten-year extension of J-51 with some components that are similar to those included in S8170A/A10549, though the latter is somewhat more expansive. As part of the Senate budget resolution, the full Senate voted to substitute S8170A/A10549 for the Executive proposal. On March 18th, the Senate Housing Committee approved the bill as stand-alone legislation and reported it to the Finance Committee, and it has been introduced in the Assembly and referred to the Real Property Taxation Committee.

“As the State Senator representing the largest number of co-ops and condos in New York, I know firsthand how difficult it can be for buildings to manage major repairs while keeping maintenance affordable for residents,” said Senator Toby Ann Stavisky. “Our proposal updates the J-51 program so more co-ops and condos can access the support they need to make essential improvements, and protects the long-term affordability of homeownership in New York City.”

“Addressing New York City’s housing crisis means both building new housing and preserving the housing we already have,” said Senator Erik Bottcher. “Strengthening and expanding the J-51 program will help property owners make critical upgrades to aging multifamily buildings, protect our existing housing stock, and keep thousands of apartments viable for the long term. The more quality, safe, and sustainable housing we have available, the more affordable we can make housing for everyone, and that's why I’m proud to support Senator Kavanagh’s and Assemblymember Braunstein’s efforts to modernize the J-51 program.”

“A strong city is built not only with bricks and mortar, but with the public policies that protect and renew the homes our families depend on. New York’s housing future depends not only on building new homes, but on preserving the buildings that generations of New Yorkers already call home,” said Senator Robert Jackson. “Strengthening and expanding the J-51 program will help ensure that the multi-family buildings that anchor our neighborhoods remain safe, resilient, and able to serve the families who live in them. In a city where affordability grows more fragile each year, preserving existing housing is not a secondary strategy—it is one of the most powerful tools we have.”

“Expanding and strengthening the J-51 program is critical to preserving New York City’s multifamily housing stock and protecting the stability of our neighborhoods. Too many of our buildings in the Bronx are aging and require critical repairs and upgrades. By improving access to the program, reducing barriers for responsible property owners, and expanding coverage for the cost of necessary improvements, we can ensure that more buildings in our neighborhoods receive the investments they need to remain safe, efficient, and livable. Strengthening J-51 will also enhance transparency and accountability, ensuring that the program works as intended, supporting responsible property owners while protecting the tenants who rely on safe, well-maintained, and affordable housing. At a time when housing stability is one of the greatest challenges facing our city, modernizing this program is both a practical and necessary step. I am proud to support efforts to expand and modernize J-51 so that it continues to serve our communities and help keep New Yorkers in the homes they depend on,” said Senator Luis R. Sepúlveda.

"New York must be able to achieve a greener and more affordable New York, and the J-51 program will provide a path for buildings to make much-needed capital repairs and energy efficiency upgrades," said Assemblymember Linda B. Rosenthal, Chair of the Assembly Committee on Housing. "The J-51 program has long allowed buildings throughout our city to make capital improvements without breaking the bank and displacing residents, but these benefits must be renewed this year. To holistically tackle the affordable housing crisis, we must use every tool at our disposal. I look forward to working with Senator Kavanagh, Assemblymember Braunstein and other colleagues to ensure the renewal of the J-51 program." 

“The J-51 tax incentive program is an important resource for New Yorkers, especially as housing across the city becomes increasingly scarce and unaffordable. As Chair of the Assembly Committee on Real Property Taxation, I support expanding the J-51 program because it provides critical support to multi-family property owners to preserve and improve housing across New York City. I applaud Assemblyman Braunstein and Senator Kavanagh for their work on this issue, and I look forward to continue working to advance meaningful solutions that address the affordability crisis, expand access to affordable housing, and deliver relief for our communities,” said Assemblymember Jaime Williams, Chair of the Assembly Committee on Real Property Taxation.

“Preserving New York City’s aging housing stock must be part of any serious effort to address the housing crisis, and J-51 gives building owners a tool to reinvest in homes the city urgently needs,” said Zachary Steinberg, EVP of External Relations & Advocacy at the Real Estate Board of New York (REBNY). “Extending the program's expiration date and expanding eligibility will allow more owners to make the repairs and upgrades needed to maintain safe, high-quality homes for New Yorkers.”

“The majority of rent-stabilized buildings are more than 90 years old. As they age, investment is needed to ensure they are preserved and modernized. Without government help from programs like J-51 this is impossible. Already thousands of rent-stabilized buildings are in fiscal distress and their quality is declining. We are grateful that the legislature has recognized this problem and is taking steps to make sure we don't lose this vital portion of New York housing,” said Jay Martin, Executive Vice President, New York Apartment Association.

“CNYC applauds Senator Kavanagh and Assembly Member Braunstein for engaging with co-op and condo homeowners on S8170A/A10549. If adopted, the resulting J-51 Program will go a long way toward safeguarding the ongoing viability of co-op and condo homeownership. The proposed CPI escalator for eligibility caps and required biennial certified cost review will reinforce the value of the ten-year time frame, enabling co-ops and condos to undertake necessary resiliency, sustainability, and energy-efficiency projects without fear of financial risk. As New York State braces for climate change and implements rigorous new energy codes, the proposed J-51 Program, with its $75,000-per-unit assessed-value cap, is urgently needed by middle-income New Yorkers seeking a secure homeownership option,” said Rebecca Poole, Director of Membership and Communication, Council of New York Cooperatives & Condominiums.

For full release:
https://www.nysenate.gov/newsroom/press-releases/2026/brian-kavanagh/kavanagh-braunstein-legislators-property-owners-housing