The J-51 tax benefit program is for rehabilitation If the DHCR approves an application for a rent
work completed before June 30, 2022. If the increase based on an MCI, the owner may adjust
owner of apartments in New York City receives a the rent during the term of an existing lease only if
J-51 tax abatement for the MCI, the rent increase the lease contains a clause specifically authorizing
is reduced by a portion of the value of the tax the owner to do so. A satisfactory lease clause
abatement. The rent is temporarily reduced in would provide as follows: “The rent established in
the MCI proceeding or at a later date in a Tax this lease may be increased or decreased by an
Abatement Modification proceeding. The rent is order of the DHCR or the Rent Guidelines Board.”
restored at the end of the tax abatement period
pursuant to a DHCR issued rent restoration order How did the Housing Stability & Tenant
for rent controlled apartments and an owner filed Protection Act of 2019 affect MCI case
notice for rent stabilized apartments. processing and rent increases?
The J-51 R tax benefit program is for rehabilitation • Tenants have 60 days to respond to the
work completed on or after June 30, 2022. If a owner’s MCI application.
building owner receives a J-51 R tax abatement
for an item, MCI rent increases are permanently • MCI increases are prohibited for buildings
prohibited for that same item and no MCI rent with 35% or fewer rent regulated units.
increase may be issued for that same item either • MCI increases are prohibited if there are
during the J-51 R restriction period or thereafter. hazardous violations on file with the local
municipality in addition to immediately
hazardous violations.