NYC Property Tax Abatement

The legislation authorizes a city with a population of one million or more, effectively New York City, to adopt a local law providing a real property tax abatement for eligible buildings in which eligible rehabilitation construction has been completed. The aggregate abatement cannot exceed 100% of the total certified reasonable cost of the eligible construction, as determined under rules and regulations of the local housing agency. The abatement cannot be effective for more than 20 years, and the annual abatement cannot exceed 8.33% of the total certified reasonable cost of the eligible construction.

The annual abatement for an eligible building in any consecutive 12-month period cannot exceed the amount of real property taxes payable for the building during that period. However, the annual abatement cannot exceed 50% of the real property taxes payable during the period for:

1. an eligible rental building owned by a limited-profit housing company or redevelopment company;
2. an eligible homeownership building; or
3. an eligible regulated homeownership building.

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