This program is designed to increase commercial tenant occupancy in older buildings in lower Manhattan by encouraging owners to invest in building improvements. The Commercial Revitalization Program (CRP) provides tax incentives through a property tax abatement and a Commercial Rent Tax Special Reduction for nonresidential or mixed-use buildings built before 1975. Your property must be located in a designated abatement zone. You are required to make certain minimum capital improvements to the property to qualify.
Commercial Revitalization Program (CRP) FAQ
Benefit
If you qualify, the owner's tax bill will be reduced and the benefit will be passed on to you as a reduction in rent. You will receive either a 5 Year or 3 Year Abatement, depending on the lease term.
| Lease Term | Abatement Period | Year 1 | Year 2 | Year 4 | Year 5 | |
| Minimum 3 years less than 5 years | 3 Years | Property tax liability or $2.50 per sq. ft. whichever is less | 2/3 of initial abatement | 1/3 of initial abatement | Abatement Expires | |
| 5 years or more | 5 Years | Property tax liability or $2.50 per sq. ft. whichever is less | Property tax liability or $2.50 per sq. ft. whichever is less | Property tax liability or $2.50 per sq. ft. whichever is less | 2/3 of initial abatement |
Eligibility
Location
Eligible buildings must be located in the Title 4 abatement zone: Murray Street and Frankfort Street on the north, South Street on the east, Battery Place on the south, and West Street on the west.
Special Provisions for Fulton Street Hub Tenants
If you were a tenant in the Fulton Street Hub with a CRP Certificate of Abatement and your lease was terminated due to a takeover by eminent domain, you are eligible to receive a second Certificate of Abatement at no cost if you:
- Relocate to an eligible location within the Lower Manhattan abatement zone;
- Relocate within eighteen months after the first lease ends, 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.
Lease Information
The lease must be a "New," "Renewal," or "Expansion" lease and must begin on or before March 31, 2016. Subleases are not eligible. The lease term is based on the number of employees at the location sixty days after the lease begins. If there are fewer than 125 employees, the lease term must be at least three years. If there are more than 125 employees, the lease term must be for at least ten years.
Eligible Properties
Must be used for office space, retail stores, or private elementary or secondary schools.
Required Physical Improvements
Improvements to common areas are required. The minimum cost of improvements varies by the type of lease and number of employees.
| Minimum Cost of Improvements | ||
|
Lease Type |
Less than 125 employees |
More than 125 employees |
| New | New $5.00 per sq. ft. of net leasable space | $35.00 per sq. ft. of net leasable space |
| Renewal | $5.00 per sq. ft. of net leasable space if previously occupied | $10.00 per sq. ft. for all applicable net leasable space |
| Expansion | Expansion $5.00 per sq. ft. of net leasable space | $35.00 per sq. ft. of net leasable space |
Proof of Improvements
- For new and expansion leases, proof of improvements must be submitted no later than 14 months after the start date of the lease (a copy of the invoices of your expenditures and cancelled checks must be mailed along with this form).
- For renewal leases, proof of improvements must be submitted no later than 13 months after the start date of the lease (a copy of the invoices of your expenditures and cancelled checks must be mailed along with this form).