Today the committee will be voting on proposed Intro Number 1015A, a bill to improve and extend the J-51 tax abatement program. New York City is facing a housing crisis and a climate crisis, and our aging buildings are at the center of both. Our buildings are among the largest, sources of greenhouse gas emissions even as they break down around us.
Elevators are failing, stranding seniors and people with disabilities. Roof boilers and electrical systems and other critical infrastructures need investment. And in the Bronx and Queens, we are living the deadly consequences of aging housing and fire hazards. While government has a responsibility to set high standards for owners to keep buildings safe, protect buildings safe, protect tenants, and reduce emissions, we must also help owners to make the investments being asked of them.
Today, I am proud that the council will be voting on 1015A, which will do just that by improving and extending the J51 tax abatement program. J51 offers a tax abatement for eligible multifamily housing, including certain rental buildings, co-ops, and condos. It's one of the city's most important financial tools for helping owners to to keep up with costs— the costs necessary to preserve and upgrade their properties, including energy efficiency work so that buildings can better comply with Local Law 97.
And this is not a small program. The mayor's report on tax expenditures reports that the city dedicated $212.7 million to the J-51 program in the 2026 fiscal year. That's foregone tax expenditures in service of improving old properties. This program enables building owners to replace elevators, wheelchair lifts, repair roofing, install energy-efficient equipment, and J51 is only becoming more essential as older buildings continue to deteriorate and climate change solutions— climate change, excuse me, continues to require urgent action.
Earlier this year, New York State authorized the city to extend J51 and made 3 key changes. First, the legislation will provide a longer extension than previous reauthorizations. If passed today, 1015A will extend J-51 for 10 years. This means eligible projects that are complete between June 30th, 2026, and June 30th, 2036, when I will finally be 21 years old— just kidding— are able to receive this tax benefit.
Second, under 1015A, building owners would now be able to recover up to 100% of the reasonable cost of their rehabilitation work. It used to be 80%. And third, for co-ops and condos, this bill raises the assessed valuation cap from $45,000 per unit to $60,000 per unit and will be updated regularly to account for inflation. With these changes, the program has the potential to reach more than 300,000 co-ops and condo units citywide.
And in addition to these changes, 1015 will maintain previous accountability mechanisms for terminating or revoking the benefits if any building fails to comply with the program requirements, including the affidavit of no harassment. The council is also adding comprehensive reporting on which buildings receive the new J51 benefit, how much they receive, the categories of work they are pursuing, where they are located, and the breakdown between rental and homeownership buildings.
This will provide the public with transparent information on how the city is using its resources and help to shape future iterations of the J51 program.