Tax Exemptions Filings Stepped Up

Metropolitan Realty Exemptions Inc. is a leading expert in NYC tax abatement filings and has serviced property owners and developers as a one-stop shop for all your property tax needs.

The ICAP program is designed to offer tax exemptions for new or altered commercial buildings. The taxes will be exempted, and the developer will pay the amount given a year prior to construction.

The 421a program is a property tax exemption or abatement program in New York City that aims to incentivize the construction of new residential buildings with affordable housing components. Under this program, developers can receive tax benefits for a specified period in exchange for including a certain percentage of affordable units within their projects. By providing tax incentives, the 421a program seeks to strike a balance between promoting new residential development and addressing the ongoing need for affordable housing in New York City.

The J-51 program is designed for renovations and conversions on existing residential buildings. This program offers a tax exemption , where the developer only pays the taxes assigned to the year prior to construction for a number of years.

The Voluntary Inclusionary Housing program provides bonus floor area if the developer chooses to create permanently affordable housing units.

The Mandatory Inclusionary Housing program provides bonus floor area, while the developer provides permanent affordable housing units for the city.

The FRESH zoning incentive allows up to a 20,000 sq. ft. increase in Residential Floor Area for developments with a primary focus on food retail on the 1st floor. The increase is calculated at a 1:1 ratio, with every sq. ft. of supermarket space resulting in an additional sq. ft. of Residential Floor Area. Reduced parking requirements may apply based on project size and location. A Department of City Planning Certification is required for the construction of the extra floor area.

The Nonprofit Exemption provides a 100% tax exemption for properties owned and occupied by a Nonprofit organization if there are no variations in the occupancy or usage of the property.

According to the Division of Labor Services (DLS), projects with construction costs of $2.5 million or more must comply with federal, state, and local equal employment opportunity obligations. The owner needs to submit an Employment Report detailing their employment policies, practices, and workforce composition.

Compliance Filings

In order to maintain the tax abatement, it is necessary to fulfill certain compliance requirements by submitting specific filings as mandated by the relevant tax authorities. These required compliance filings play a vital role in ensuring ongoing eligibility for the tax abatement and serve as a means to demonstrate adherence to the established regulations and guidelines. It is imperative to diligently complete and timely submit these compliance filings as they serve as a critical component of maintaining the tax abatement and avoiding any potential penalties or loss of benefits.

HPD Multiple Dwelling Registration (MDR)

Property owners of residential multiple family dwellings (3+ residential units) or private dwellings where neither the owner nor the owner’s immediate family reside are required to register annually with HPD.

The DHCR department will file the annual forms with the Division of Housing and Community Renewal. These forms are required to ensure that you are complying with the state requirements for rent stabilization with affordable housing.

Bedbug filing involves reporting or documenting cases of bedbug infestations in properties. It requires providing detailed information about the infestation for various purposes such as legal disputes or insurance claims. These filings are crucial for addressing the issue, ensuring proper treatment, and protecting occupants’ well-being. They also help identify patterns and implement preventive measures against future infestations.

Certificate of Continued Use (CCU)

If you own or lease a NYC property that is currently receiving Not-For-Profit (NFP) tax exemption benefits; Industrial and Commercial Incentive Program (ICIP) exemption benefits; and/or Industrial and Commercial Abatement Program (ICAP) abatement benefits must file the certificate of continuing use bi-annually for the life time of the abatement.

RPIE filing is the annual submission of the Real Property Income and Expense statement to the NYC Department of Finance. Property owners provide financial details like rental income and operating expenses. The filing helps determine property taxes and ensures compliance with tax regulations. It is mandatory and must be submitted within the designated filing period.

Prevailing wages, within the 421a program, are minimum wage rates for construction workers and people working on the building premises on a regular basis, e.g. a superintendent, set by the New York State Department of Labor. Developers receiving tax benefits must pay these wages to construction workers on eligible projects. The goal is to ensure fair compensation and uphold labor standards in the industry. Prevailing wage compliance is monitored and enforced by authorities. This measure supports the local workforce and promotes equitable labor practices in affordable housing construction.