Bronx Buildings May Get Tax Break for Environmental Upgrades
Hundreds of Affordable Co-ops and Condos Eligible for Relief
A new report by the Green Co-op Council reveals that hundreds of affordable co-op and condo buildings in the Bronx, including the borough’s oldest Mitchell-Lama cooperative, Amalgamated Houses, may be eligible for a new property tax break. The break would be available for making environmentally friendly building upgrades.
What is the Tax Break?
The tax relief is included in Intro 654, a bill sponsored by Council Member Pierina Sanchez, which would allow owners of eligible housing to deduct 70% of a project’s cost from their property tax bill for between 12 and 20 years. The tax abatement, also known as the J51 tax abatement, would incentivize property owners to make energy-efficient upgrades such as installing rooftop solar panels, rewiring for electric stoves, and upgrading temperature controls to reduce greenhouse gas emissions.
How Many Buildings are Eligible?
According to the report, 247 affordable co-op and condo buildings in the Bronx are eligible for the tax break. Additionally, the program would benefit over 166,000 shareholder families.
Which Neighborhoods are Most Impacted?
The neighborhoods that could benefit the most from this program are those with the largest number of eligible co-op units. For example, Council Member Eric Dinowitz’s district, which includes Riverdale, Kingsbridge, and Bedford Park, has 12,226 eligible co-op units.
What are the Eligible Building Types?
According to the report, all Mitchell-Lamas would be eligible for the tax abatement. This includes Amalgamated Houses, the Bronx’s oldest Mitchell-Lama cooperative, which has been facing financial stress under rising insurance and operations costs.
What are the Next Steps?
The bill must still be passed, and property owners must complete projects by June 2026 to be eligible for the tax break. The Green Co-op Council is urging quick passage of the bill to provide much-needed relief to property owners and residents.
Conclusion
The proposed tax break offers a unique opportunity for Bronx residents to benefit from environmentally friendly building upgrades while also reducing their property tax burden. With the right support, this program can be a game-changer for the Bronx’s affordable housing landscape.
Frequently Asked Questions
Q: What is the J51 tax abatement?
A: The J51 tax abatement is a property tax break that allows eligible property owners to deduct 70% of a project’s cost from their property tax bill for between 12 and 20 years.
Q: What types of projects are eligible for the tax abatement?
A: Eligible projects include installing rooftop solar panels, rewiring for electric stoves, upgrading temperature controls, and other measures aimed at reducing greenhouse gas emissions.
Q: How many buildings are eligible in the Bronx?
A: 247 affordable co-op and condo buildings in the Bronx are eligible for the tax break.
Q: What is the deadline for completing eligible projects?
A: Eligible projects must be completed between June 2022 and June 2026 to be eligible for the tax break.
