Unlocking Tax Relief: The Condo and Co-op Property Tax Abatement Program in New York City
Updated: Mar 1
Co-op and Condo Property Tax Abatement (CCTA) program in New York City is a tax abatement program that provides eligible cooperative and condominium apartment owners with a partial abatement of their property taxes.
To be eligible for the CCTA program, building must meet the following requirements:
1. Building must be classified as a cooperative or condominium.
2. Building must have been constructed or converted on or after January 1, 1965.
3. Building must have at least 3 residential units.
4. Building must be located in a class two or class four tax district.
5. Building must not be a part of UDAAP, HDFC or DAMP programs.
6. Building must not be a part of any other tax abatement program (J-51, 420c, 421a, 421b, or 421g)
7. Building must meet prevailing wage requirements, which have 30 or more units and an average assessed unit value of more than $60,000, or less than 30 units and an average assessed unit value of more than $100,000.
Unit owners of an eligible building who meet the following criteria are eligible for the CCTA benefits:
1. Unit must be occupied as owner's primary residence.
2. Unit must not be owned under a business (LLC)
3. Unit must not be owned by the Sponsor or its successors in interest
4. Unit owned by a trust is eligible only if it's the primary residence of the beneficiary of the trust, trustee, or life estate holder.
Eligible owners will have their property taxes reduced based on the average assessed value of the residential units in the building according to the following schedule:
- An average assessed value of $50,000 or less is eligible for 28.1% reduction in property taxes.
- An average assessed value between $50,001 and $55,000 is eligible for 25.2% reduction in property taxes.
- An average assessed value between $55,001 and $60,000 is eligible for 22.50% reduction in property taxes.
- An average assessed value of $60,001 and above is eligible for 17.50% reduction in property taxes.
To apply for the CCTA program, an application must be submitted to NYC Department of Finance by an authorized representative, such as the condo board association or the property management company.
Once an application is submitted, the Department of Finance will review the application and determine eligibility. If approved, abatement will appear on property tax bills as a credit. To remain eligible for the program, CCTA Renewal and Change Form must be submitted on an annual basis by the February 15 deadline.
Overall, the CCTA program is an important tool for providing tax relief to apartment owners in New York City. By making home ownership more affordable and accessible, the program helps to support strong and vibrant communities throughout the city.
Property manager may be helpful in assisting with the application process. Property managers have experience with the application process and may be able to provide guidance and support to unit owners who are applying for the program. Property managers may also be able to help with the collection and organization of necessary documentation. Additionally, some condominiums or co-op boards may choose to have their property manager apply for the CCTA program on their behalf. This can be a convenient option for the board and can help ensure that the application is completed accurately and on time. However, it's important to note that the board or decision-makers within the condominium or co-op would need to provide authorization for the property manager to apply for the program on their behalf.
Ultimately, while a property manager is not required to apply for the CCTA program, they can be a valuable resource for co-op or condo owners who are interested in applying for the program or for boards who are considering applying on behalf of the entire building.