Commercial Revitalization Program (CRP)

The Commercial Revitalization Program is designed to increase tenant occupancy in office and retail space in lower Manhattan and reduce building obsolescence by encouraging investment in older commercial space. The CRP provides tax incentives through a property tax abatement and Commercial Rent Tax special reduction for nonresidential or mixed-use premises built before 1975.  The properties must be located in a designated abatement zones. Applicants are also required to make certain minimum expenditures to improve the eligible premises.

The abatement is a reduction in property tax for the owner and is usually passed through to the tenant in lower rent.  However, Finance does not decide how the owner will credit the benefit to the tenant.  This is determined between the two parties.

Eligibility
Required Physical Improvements
Initial Application Requirements
New Provisions for Fulton Street Hub Tenants
Level of Benefit - Including How to View Online
Continuing Eligbility - Annual Filing Requirementss
Commercial Rent Tax Special Reduction Program
Frequently Asked Questions
Forms
Contact Us


Eligibility 

Location
To qualify for the CRP abatement benefit, premises must be located in an eligible building in the Title 4 abatement zone in lower Manhattan. This abatement zone is generally defined as the area bounded by Murray Street and Frankfort Street on the north, South Street on the east, Battery Place on the south, and West Street on the west.

Lease Term
The required lease term for benefits is based on the number of persons employed on the premises sixty days after the lease commencement date. If fewer than 125 people will be employed, the minimum required lease term is three years.  The minimum required lease term is ten years, if 125 or more people will be employed.

Subleases are not eligible.

The lease must be a "New," "Renewal," or an "Expansion" lease.  Benefits will cease if a space already granted abatement is later sublet.

Eligible Premises
The space must be used for office or retail stores.

In addition, the need for local community schools has grown as lower Manhattan continues to diversify its community character and expand its residential units.  Chapter 280 of the NYC Administrative Code addresses these changes by amending the definition of eligible CRP premises to include private, elementary or secondary schools.

Lease Commencement Date
The lease must begin on or before March 31, 2014.

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Required Physical Improvements
Improvements to common areas of the premises are required.  The minimum cost of improvements varies by the type of lease and number of employees.

   New leases with less than 125 employees = $5.00 per square
   foot of net leasable space.
   New leases with 125 or more employees = $35.00 per square
   foot of net leasable space.

   Renewal leases with less than 125 employees = $5.00 per
   square foot of net leasable space if previously occupied.
   $10.00 per square foot for additional space.
   Renewal leases with 125 or more employees = $10.00 per
   square foot for all applicable net leasable space.

   Expansion leases with less than 125 employees = $5.00 per
   square foot of net leasable space.
   Expansion leases with 125 or more employees = $35.00 per
   square foot of net leasable space.

Time Period to Show Proof of Expenditures
For new and expansion leases, required proof must be submitted no later than sixty days following the lease rent commencement date.  For renewal leases, you are required to submit proof no later than fourteen months following lease commencement.

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Initial Application Requirements
By law, a completed Commercial Revitalization Program Application must be submitted within 180 days of the lease start date.  CRP benefits will be denied if an application is received after this date.  Below is a partial list of the main application requirements. Please consult the current application for other instructions and filing deadlines. See forms section below.

   1. Proof of Expenditure form
   2. Proof of Employment form
   3. $500 non-refundable application fee (by money order
       or certified check)

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New Provisions for Fulton Street Hub Tenants
Chapter 424 of the 2006 Laws of the State of New York provides benefits for tenants in the Fulton Street Hub who previously received a CRP Certificate of Abatement. Those tenants whose leases have been terminated as a result of a takeover by eminent domain are now eligible to receive a second Certificate of Abatement if they:

• Relocate to eligible premises within the Lower Manhattan abatement zone;
• Relocate within eighteen months after termination of the first lease, or eighteen months after July 26, 2006 (the effective date of the law), whichever is later; and
• Meet all other CRP eligibility requirements, including expenditure requirements.

The Department of Finance will waive the $500 CRP application fee for Fulton Street Hub businesses reapplying for benefits.

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Level of CRP Benefit
The CRP property tax benefit is either a five- or three-year abatement, depending on the lease term.

Qualifying leases with a minimum term of three years but less than five years are eligible for three-year tax abatement. The tax abatement in the initial year is equal to the actual property tax liability per square foot or $2.50 per square foot, whichever is less.  In years two and three, the abatement benefit is equal to two-thirds and one-third, respectively, of the initial tax abatement.

For leases with a term of five years or more, the abatement lasts for five years. The tax abatement in the first three years is equal to the actual property tax liability per square foot or $2.50 per square foot, whichever is less. In years four and five, the abatement is equal to two-thirds and one-third, respectively, of the initial tax abatement.

Once abatement is granted, the applicant and/or associated representative will receive a Notification of Eligibility.  It must be carefully read.  Any questions should be immediately addressed.  It will include your application number to be used for future reference.

View Benefits Online 
It is important for CRP tenants to use your application number to access information online.  Building owners may view the current CRP benefit recipients within your property by visiting the Summary of Benefits link as well.

Go to Property Information, enter your borough, block and lot numbers and then select CRP/CEP Summary of Benefits.

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Continuing Eligibility - Annual Filing Requirements
After CRP benefits have been granted, each tenant who wishes to maintain the program must file a Certificate of Continuing Eligibility between June 1st and June 30th of each year the abatement is in effect.

A Certificate of Continuing Eligibility form can only be obtained by download from our web site.  It will no longer be automatically mailed. Please print a copy, complete and mail to:

NYC Department of Finance, Attn: CRP
59 Maiden Lane, 22nd Floor
New York, NY 10038

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Commercial Rent Tax (CRT) Special Reduction
This benefit is a special reduction subtracted from the amount of rent otherwise subject to the Commercial Rent Tax.

Non-profit companies and businesses whose annual lease is under $200,000 do not pay commercial rent tax (also known as an "occupancy tax") and, therefore, are not eligible for the CRT Special Reduction.

Tenant and Lease Qualifications

   Government Owned Buildings - Tenants who lease space
   may qualify for the CRT Special Reduction without applying
   for CRP.  If they are not applying for CRP, they do not have
   to meet CRP expenditure and lease requirements.

   Non-government Owned - Tenants in these buildings must
   apply for the CRP tax abatement to receive the CRT Special
   Reduction.

   Lease Qualifications

• Begun on or after July 1, 2005
• Buildings south of Canal Street receiving a Certificate of Occupancy after 1975
• Leases, but not subleases, having a term of at least five years, beginning between July 1, 2005, and June 30, 2013

Benefits

The benefit period is three or five years.

   Year one: The reduction is equal to the base rent.

   Years two and three of 5-Year Benefit: The lesser of the
   year one base rent or the base rent for the year in question.

   Year two of 3-Year Benefit or year four of 5-Year Benefit:
   Equal to 2/3 of the lesser of the year one base rent or the
   base rent for the year in question.

   Last year: Equal to 1/3 of the lesser of the year one base
   rent or the base rent for the year in question.

The special reduction is an optional incentive program requiring both the tenant and the landlord to jointly apply.  If either of these parties does not apply, the special reduction benefit will not be granted.

CRT Special Reduction Required Forms

• Send either a Certificate of Abatement From Property Tax or a Certificate of Eligibility for Commercial Rent Tax Benefits and
• A Commercial Rent Tax Special Reduction Compliance Certification Form.

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Forms

Commercial Revitalization Program and Commercial Rent Tax Special Reduction Application
(includes Proofs of Employment and Expenditures forms)
 Download Application

Affidavit of Continuing Eligibility for Real Estate Tax Abatement and Commercial Rent Tax Special Reduction
 Download Form

Contact Us
For program policy, eligibility and application status questions; please contact:
Commercial Revitalization Program (CRP)

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