New Report: 166,000 Families in NYC Co-ops Could Get Thousands Each Year to Go Green with New Tax Break

NEW YORK, NY (10/01/2024) (readMedia)-- Today, New York City Council Housing Chair Pierina Sanchez and Councilmember Lynn Schulman joined with co-op and condo owners across New York City to drum up support for proposed legislation, Int. 0654, that would save them money as they make building upgrades to comply with Local Law 97. As New Yorkers suffer through climate change-fueled extreme weather, Local Law 97 will decrease climate change-accelerating emissions and make people's homes more comfortable.

Watch the presser here.

A new report released by the Green Co-op Council, summarizing publicly available DOB data, estimates that more than 166,000 New York households could benefit from the legislation, and outlines how those owners will save thousands every year on the cost of efficiency upgrades.

Read the new report here.

"As NYC faces the intersecting crises of rising housing unaffordability, evictions and homelessness, with low and middle-income New Yorkers leaving the city in record numbers, the preservation and upgrading of the housing we do have is of paramount importance. That is why I am proud to have introduced Int. 654, reauthorizing the J51 tax incentive, which could save more than 166,000 families in co-ops across the city thousands of dollars each year, while enabling buildings across the city to comply with the ambitious and necessary climate goals of Local Law 97. Local Law 97 is the nation's most aggressive municipal climate law, targeting emissions reduction that can make our communities easier to live and breathe in. With Int. 654, we can upgrade our housing, put money back into the pockets of everyday New Yorkers, and green our city. I urge my colleagues to join me in supporting and passing this critical legislation" said NYC Council Housing and Buildings Chair Pierina Sánchez.

"Today, we stand strong in support of Intro 654, a forward-thinking bill that supports affordable housing and fights climate change. This legislation will allow certain buildings to receive crucial property tax abatements, helping them comply with Local Law 97," said NYC City Council Member Shaun Abreu. "This is a significant opportunity for many buildings in our district that need assistance in meeting these important environmental standards. Together, we can create a sustainable future, ensuring cleaner air and healthier homes for all our community members."

"As Board President at Penn South, I am proud of our affordable status in a city that is currently experiencing a Housing Crisis. One of the ways that we are able to remain affordable is by partnering with the City through programs like J-5 and Intro 654 that allow us to tackle necessary projects to keep our residents safe and healthy. Our residents care deeply about environmentalism, but as a low income community we simply do not have the capital to do this alone – this is the reality. However, with Local Law 654 and partnership from the city, we believe that we can work together to make the goal of Local Law 97 compliance possible, and become a successful model for reducing emissions and remaining affordable for our residents," said Ambur Nicosia, Board President at Penn South.

"Affordable cooperative housing is currently under severe financial stress. We're working to reduce our emissions, but we need the financial help this legislation can provide," said Ed Yaker, Treasurer of Amalgamated Houses.

"My neighbors and I want to make improvements and comply with Local Law 97 for the long-term sustainability and health of our building. The assistance Intro 654 would provide would make a BIG difference for those of us with limited incomes – we'd save more than $50,000 a year! I urge the City Council to pass this bill," said Elaine O'Brien, co-op shareholder in Queens.

"The Council of New York Cooperatives & Condominiums (CNYC Inc.) has supported the climate goals of Local Law 97 (LL97) since its inception. Improving the energy efficiency and resiliency of New York City's housing, reducing New York's reliance on fossil fuels, and cutting carbon emissions are critical collective goals, necessary not only for improving the quality of life of future generations but also to ensure existing housing can withstand further flash floods, wind-driven rain, and multiple days of high temperatures. But many cooperative and condominium homeowners are already under financial pressure from the ongoing increases in their housing expenses, and they need help paying for their building upgrades. CNYC welcomes and supports Intro 0654, as an urgently needed first step," said Rebecca Poole, Director of Membership, CNYC Inc.

"Low-income New Yorkers living in aging housing stock are among the most impacted by climate change," said Emily Ng, UHAB's Director of Member Services. "Reauthorizing J-51 would help make it possible for these homeowners to pay for much needed repairs and energy efficiency upgrades that will not only help them avoid penalties under the law, but will also improve comfort and living conditions.

Under this "Affordable Housing Rehabilitation Program" legislation, middle-income and affordable housing co-ops and condos would be eligible to cut their property taxes for twenty years after investing in building upgrades, including those that help them comply with Local Law 97:

• In a building comparable to the co-op at 37-16 83rd St in Jackson Heights, re-wiring all units to prepare for electrification could result in a tax abatement of $53,000 every year for twenty years – a substantial ~20% decrease in the co-op's current property taxes.
• A building akin to 525 W 235th St in Riverdale could install a new roof for solar readiness and save 10% of its tax bill for twenty years.
• Benefits would also flow to HDFC co-ops, which must take specific steps to reduce emissions: A building like 2416 Newkirk Ave in a disadvantaged community in Flatbush could shave $5,670 off of their tax bill for twelve years as they install individual-unit temperature controls, an efficiency measure that will also reduce their energy costs.

An estimated 1,318 co-ops across the city would benefit, with:

• 247 in the Bronx
• 363 in Brooklyn
• 104 in Manhattan
• 586 in Queens
• 16 in Staten Island

The "Affordable Housing Rehabilitation Program" was passed by the New York State Legislature in 2023, and now the New York City Council needs to pass its own bill to authorize the program. Offering tax abatements for building upgrades isn't new – a similar program called J-51 expired in 2022, providing tax incentives for multifamily residential building renovations. Now, as building owners across the city work to make the necessary upgrades to go all-electric and comply with Local Law 97, incentive programs like this "New J-51" tax abatement would support thousands of buildings with financial assistance to go green. This new legislation also comes with strong tenant protections for rental properties.

About Green Co-op Council

The Green Co-op Council is a new group made up of co-op shareholders advocating for policies to help green their homes, protect the environment and save money. The Green Co-op Council is a project of Spring Street Climate Fund, a non-profit organization that works to win ambitious and durable climate policy in New York.