NYC Council Introduces Bill to Expand J-51 Program, Advancing Housing Affordability and Climate Action

NEW YORK, NY (08/13/2026) (readMedia)-- Council Member Pierina Sanchez, Chair of the Housing and Buildings Committee, today introduced legislation (Intro. 1015) to authorize an expanded version of the J-51 tax abatement program, a critical tool for preserving affordable housing and supporting the city's transition to clean energy. Following recent reforms at the State level, more than 300,000 co-op and condo apartments across NYC will be eligible for the J-51 "clean buildings" tax break, as well as affordable rental buildings. The tax break can be used to pay for clean and healthy building upgrades including boilers, facade repair, energy efficiency improvements and renewable energy installations - potentially saving everyday New Yorkers thousands in upgrade costs.

"To respond to the housing and climate crises, we must do everything in our power to preserve and retrofit New York City's aging building stock," said Council Member Pierina Sanchez, Chair of the Committee on Housing and Buildings. "This bill would do just that-extending the J-51 program to stabilize hundreds of thousands of homes for current and future generations. In line with recent changes to J-51 at the state level, this expanded tax benefit would benefit up to 300,000 co-ops and condos across the city and serve as a critical preservation tool that offsets improvement costs for low-to-moderate cost residential buildings, extending the program for the next decade. These reforms will allow more owners to reach their emission targets under Local Law 97, without shifting the cost burden to their tenants. Thanks to the partnership of Senator Kavanagh and the Green Co-Op Council, we now have an opportunity to take decisive action."

Intro 1015 mirrors the expanded J-51 framework approved in the New York State Budget, which addresses the dual crises of housing costs and climate change. The program provides property tax abatements for building upgrades, including habitability, energy efficiency and electrification projects necessary to comply with Local Law 97 requirements – all while helping middle class and low-income New Yorkers afford to stay in their homes.

"On the heels of passing a bigger, better J-51 program in the State Budget, we're happy to see momentum toward renewing this important housing affordability program. Our members are eager to make investments in their co-ops for lower energy costs and better air quality, and J-51 is key to making those investments affordable for hundreds of thousands of families," said Priya

Mulgaonkar, Director of the Green Co-op Council.

"New Yorkers should not have to choose between affordable homeownership and a cleaner, healthier environment," said NYC Chief Climate Officer Louise Yeung. "By supporting energy efficiency, electrification, and other critical improvements, J-51 can help middle-class co-op and condo owners cut emissions and energy costs, improve indoor comfort and air quality, and move us toward a more affordable and sustainable New York City."

"We're going to need big investments in modernizing and upgrading housing for many years to come, to ensure New Yorkers have access to homes that are well-maintained and resilient, with heating and cooling systems that meet the needs of residents in ways that are sustainable. Extending and expanding the J-51 program was a critical priority in Albany this session, and I am proud that we authorized the longest extension and the most dramatic expansion of the program New Yorkers have seen in many decades," said Senator Brian Kavanagh, Chair of the State Senate Committee on Housing, Construction, and Community Development. "I applaud and thank Councilmember Sanchez, Speaker Menin, and the City Council for acting decisively to advance this critical legislation, and I look forward to the time soon when property owners will have the support they need to perform critical building upgrades and invest in the future."

Key provisions of the reauthorized J-51 program include:

• Extends the program through 2036, providing the financial predictability required for complex, multi-year sustainability and capital projects.
• Expands eligibility to ensure that middle-class co-ops, previously excluded, can now access these benefits, and that eligibility keeps up with inflation.
• Covers up to 100% of certified reasonable costs for capital upgrades, including energy efficiency and clean energy retrofits, clean heating systems, and structural repairs.

The program has broad support from council leadership and members across the city, as well as housing, climate and affordability advocates.

"Reauthorizing J-51 fights two crises facing our city: skyrocketing housing costs and accelerating climate change. Across our city, co-op and condo owners are being squeezed financially, while also being asked to comply with Local Law 97. J-51 helps families afford critical upgrades to their homes that lower their energy bills, clean our air, improve comfort, and reduce carbon emissions," said City Council Majority Leader Shaun Abreu.

"Co-ops are home to hundreds of thousands of New Yorkers, many of whom are already facing rising costs. I have long supported practical policies that help building owners comply with Local Law 97 while preserving affordability, and reauthorizing J-51 is an important part of that effort," said City Council Member James F. Gennaro, Chair of the Committee on Environmental Protection and Waterfronts. "By helping offset the cost of critical building improvements, this program can support both homeowners and our city's climate goals. I look forward to working with the Speaker and my colleagues as the proposal advances through the legislative process."

"For too many New Yorkers, the rising cost of housing and the cost of making necessary building improvements are putting added pressure on their ability to stay in their homes," said Council Member Lynn Schulman. "J-51 is an important tool that helps co-op owners and affordable housing providers make critical upgrades while protecting long-term affordability. As we work to address the impacts of climate change, we must ensure that the transition to cleaner, more efficient buildings does not come at the expense of working and middle-class New Yorkers. This legislation is a commonsense approach to preserving our housing stock, supporting homeowners, and building a more sustainable city," said CIty Council Member Lynn Schulman.

"The J-51 tax abatement has long been a vital tool in maintaining our city's housing stock, and the New York City Council is taking a crucial step towards making homeownership affordable," said City Council Member Linda Lee, Chair of the Committee on Finance. "Across the city, we have seen the impacts of the affordability crisis and how residents are struggling with the rising costs of living in our city. Reinstating J-51 will provide much-needed relief to co-ops by helping offset the costs of retrofits to come into compliance with our city's sustainability goals. I look forward to working with Speaker Menin and Chair Sanchez to ensure this legislation crosses the finish line."

"Our city can support climate-based solutions, our co-ops, and affordability in the face of rising costs of housing and housing improvements. We need programs like J-15 that help co-ops make improvements to their buildings that make them greener and more affordable," said City Council Member Shekar Krishnan. "I stand with the Green Co-op Council and a strong coalition of State and City elected officials in fighting to cut the red tape of government and ensure co-ops are rewarded for making improvements to homes that make them healthier, greener, and more affordable."

"Extending J-51 is critical to meeting the goals of Local Law 97," said City Council Member Eric Dinowitz. "This program empowers co-op buildings - including more than 10,000 families in the North Bronx - to make the energy-efficient and climate-friendly upgrades we need to reduce pollution and fight climate change. Without an extension, thousands of buildings could lose the opportunity to save money on urgent capital repairs. I was proud to co-sponsor legislation to renew the J-51 tax abatement in 2024, and look forward to working with my colleagues to pass this expanded program this session so that New Yorkers can live more sustainably and affordably."

"My stance on J-51 remains the same as it was when the question was first proposed to me before I took office. If we're serious about meeting LL97 goals of net zero by 2050 and creating long-term housing affordability, extending the J-51 program is a no-brainer. In the South Bronx, we are facing the brunt of severe weather events. Flooding is getting worse, heat waves are more frequent and intense, and our quality continues to be the worst in the state. Each environmental event further underscores the need to urgently address and prevent these crises, extending J-51 is the first step. This conversation can no longer be about creating a greener New York for the sake of long-term sustainability and future generations, it's about the generation of New Yorkers living here today who are at risk and ensuring that our city remains habitable," said City Council Member Justin Sanchez.

"I congratulate the swift action of Speaker Menin and Council Member Sanchez to enable the State's renewal and expansion of the J-51 program. This program helps our rent-stabilized and cooperative housing stock conduct needed capital work while maintaining affordability. Expansions in assessed value caps, abatement coverage, and qualifying sustainability upgrades only serve to make this program stronger and more accessible. Our rent-stabilized homes and affordable co-ops are jewels of our city, and keeping them safe and sustainable must be a mandate for our State and City leaders. I am proud to support this enabling legislation," said City Council Member Chris Marte.

"Co-ops have long been one of the ways that working, and middle-class New Yorkers have been able to own a home and stay in the city," said City Council Member Gale A. Brewer. "We need to protect that path to homeownership, particularly as buildings face rising costs and new requirements. These owners are facing pressure to address energy efficiency, which can be financially stressful, and J-51 can help to mitigate the cost. I thank Council Member Sanchez for moving this legislation forward and making sure more co-op and condo owners can benefit from J-51."

"We have a dual affordability and a climate crisis that's squeezing our working class and putting overwhelming pressure on our energy grid," said City Council Member Sandy Nurse. "The J-51 tax abatement program supports our city's climate goals by incentivizing clean and affordable housing improvements. We can keep low-income New Yorkers in their homes and improve our housing stock while making it easier for owners to upgrade their buildings."

"Upgrading our buildings to reduce greenhouse emissions is critical to mitigating the impact of climate change and supporting the city's transition to clean energy," said City Council Member Harvey Epstein. "At the same time, it is important that we make these upgrades affordable for New Yorkers living in co-ops. I am proud to co-sponsor the reauthorization of J-51, which is a simple step we can take to meet our climate goals and ensure that co-ops have the tools they need to make these upgrades"

"The new and expanded J-51 bill, which extends the program for ten years and includes an escalator clause for eligibility thresholds, is an important step to providing needed relief for the co-op and condo homeowners in qualifying buildings who must self-fund preservation, sustainability and resiliency projects while facing escalating carrying costs," said Rebecca Poole, Director of Membership and Communication for the Council of New York Cooperatives & Condominiums (CNYC). "CNYC is grateful to Governor Hochul, Senator Kavanagh and Assembly Member Braunstein for shaping the enabling state legislation, and to Council Member Sanchez for her work on the City's bill. CNYC looks forward to working with the City in helping all eligible co-ops and condos access the benefits offered by the program."

Edward Yaker, Chair of the Coordinating Council of Cooperatives, said: "At Amalgamated Houses where I live, and at all the co-ops of the Coordinating Council of Cooperatives, we are struggling to maintain the affordability of our homes, partly due to major capital repairs. J-51 can be an important tool by lowering the costs of these upgrades. We were glad to see the State improve the program with lower and recoverable application fees, and an increased eligibility cap so that even more working-class co-op owners can qualify. We thank Chair Sanchez for introducing this bill and look forward to collaborating with them, sharing our expertise to create and support an even better J-51."

"J-51 R is a critical lifeline that helps thousands of eligible owner-occupied and rental multifamily buildings in NYC invest in capital improvements, including those needed to meet Local Law 97," said Chris Halfnight, CEO of Urban Green Council. "This legislation ensures that around half of all co-ops and condos with emissions limits under Local Law 97 can access tax abatement benefits to support necessary upgrades. We thank Council Member Sanchez for taking this step to align affordability and decarbonization, giving everyday New Yorkers the assurance that J-51 R will remain available to them for the next decade."

"Many thanks to Council Member Pierina Sanchez for introducing this much-needed legislation," said Lonnie J. Portis, Director of Policy and Legislative Affairs at WE ACT for Environmental Justice. "Communities of color and low-income have been largely left behind in the transition to renewable energy because most cannot afford the upgrades and improvements – interventions that will not only lower their energy bills but also reduce the emissions that disproportionately harm their health. Reauthorizing J-51 will start to address that."

"The City paying for 100% of the costs of energy efficiency and repair projects through 2035 for working class co-ops and condos will lower energy bills and housing costs, create good jobs, and cut pollution. The obscure acronym hides that this is a big deal!" said Pete Sikora, Senior Advisor for New York Communities for Change.

"The J-51 tax abatement program will fund critical investments in NYC's middle class housing stock, helping these families live in a healthy, affordable NYC. We are especially excited about how these investments will reduce the indoor and outdoor air pollution that is causing or contributing to premature deaths, diseases and enormous health care costs." said Deepa Prasad, MPH, Co-Chair of the Climate Reality Project NYC Metro Chapter.

"The City Council should immediately reauthorize J-51 to help low- to middle-income co-ops and condos comply with Local Law 97. As we continue to face rising costs and a worsening climate crisis, programs like J-51 become even more important. The success of Local Law 97 relies on generous funding from the state to ensure no community is unable to meet the requirements. The expansion of J-51 will lead to immediate positive effects, from more comfortable homes and cheaper bills for residents in eligible buildings to more jobs and cleaner air citywide," said Graham Gale, NYC Organizer at Food & Water Watch.

"Jewish Climate Action Network NYC (JCAN) strongly supports City Council adoption of an expanded version of the J-51 program that helps condos, co-ops and affordable rental buildings achieve the twin goals of preserving affordable housing for New Yorkers while implementing clean and healthy upgrades. The proposed legislation will reduce climate pollution throughout New York City, which preserves and protects the well-being of New Yorkers today and for future generations. Our support stems from our deep faith and calling to protect all life on this sacred planet and we join with people of all faith heeding the same calling," said Jeff Levy-Lyons and Wendy Seligson, Co-directors Jewish Climate Action Network NYC.

"The new and improved J51 will help thousands of families benefit from lower bills, good jobs, and cleaner air in their homes, neighborhoods, and across the city. It's great to see New York's City and State leaders coming together to address the compounding affordability, public health, and climate change crises," said Cecilia Ellis, Policy and Communications Manager at NYPIRG. "With the introduction of this J-51 re-authorization legislation, we're excited to work with the City Council to bring these changes home!

"350Brooklyn has thousands of members in Brooklyn, many of whom live in coops. They care deeply about complying with our city's flagship climate law, Local Law 97, but many have modest financial means and income," said Sarah Reed, a volunteer organizer with 350Brooklyn. "Extending J-51 is a critical piece of the puzzle to finance these improvements, which are urgent for the health of our climate and quality of life."

"As families living in New York City, our members are grappling with both the pressures of rising costs and the many impacts of rising temperatures. J-51 is an initiative that addresses both, showing that the affordability agenda can and does go hand-in-hand with a greener, healthier city for our children," said Ella Ryan, a volunteer organizer with Climate Families NYC.