Food Retail Expansion to Support Health (FRESH) Program

The Food Retail Expansion to Support Health (FRESH) program helps bring grocery stores to neighborhoods that need them. It offers zoning and financial incentives to make this happen.

A study conducted for the Mayor's Food Policy Task Force found that many low-income neighborhoods in the City do not have enough grocery stores. This means people in these areas have a hard time finding affordable, fresh food. This lack of fresh food is linked to higher rates of diseases like heart disease, diabetes and obesity. The FRESH program was created to help fix this problem.

Program eligibility

FRESH incentives are for grocery store operators and developers who want to build or renovate spaces for grocery stores in eligible areas. You can see a map of these areas on the FRESH website.

Financial incentives

The New York City Industrial Development Agency (NYCIDA) offers financial incentives to eligible grocery store operators and developers, including:

• Real estate tax reductions

  • Land tax abatement for 25 years, equal to $500 multiplied by each full-time employee or part-time equivalent at the time of application.
  • Stabilization of building taxes based on pre-improvement assessed value for 25 years (benefit reduced in years 22 through 25).
  • Sales tax exemption
    • Exemption from the 8.875 percent sales tax on materials to construct, renovate or equip facilities.
  • Mortgage recording tax deferral
    • Deferral of mortgage recording tax related to the project's financing, equal to 2.05 percent for mortgages of $500,000 or less, and 2.80 percent for mortgages greater than $500,000.

Zoning incentives

The New York City Department of City Planning provides zoning incentives. Proposed grocery stores in the FRESH zoning area are eligible. You can see a map of these areas on the FRESH website. These incentives include:

• Additional development rights
  • One additional square foot of residential floor area in mixed-use buildings for every square foot provided for a grocery store, up to a 20,000 square foot limit.

• Reduction in required parking

  • No parking required for grocery stores up to 40,000 square feet in commercial districts that permit residential buildings with ground floor retail.
  • The first 15,000 square feet of grocery retail space is exempt from parking in other commercial and light manufacturing districts.

• Larger as-of-right stores in light manufacturing districts

• Eligibility: You must run or plan to build or renovate retail space for a grocery store.
• Location: Your store must be in a Food Retail Expansion to Support Health (FRESH) area. Check the FRESH homepage for the map.
• Assistance: Ask the New York City Industrial Development Agency (NYCIDA) for help before signing a lease, buying property or starting renovations.
• Retail space: Your store must have at least 6,000 square feet for groceries.
• Food products: At least 50 percent of your store must be for food.
• Perishable goods: At least 30 percent of your store must be for perishable goods like dairy, fresh produce, meats, poultry, fish and frozen foods.
• Fresh produce: You must have at least 500 square feet for fresh produce.

For financial incentives

• Contact NYCIDA: NYCIDA will check whether your project is eligible. All benefits need approval from the NYCIDA's Board of Directors. You must ask for NYCIDA help before signing a lease, buying property or starting renovations unless these depend on NYCIDA help.

For zoning incentives

• Certification: Your building must be certified as a FRESH food store by the Chairperson of the City Planning Commission. Visit the Department of City Planning homepage to learn more.
• Commitment: You must show a commitment, through a lease or Memorandum of Understanding, to keep a FRESH store in the building that meets the floor area requirements.
• Declaration of restriction: You must record a declaration of restriction on the property deed to keep a FRESH food store.
• Temporary Certificate of Occupancy: If your building receives additional floor area through FRESH zoning incentives, you must have the grocery store TCO issued by the Department of Buildings before a TCO can be issued for the building's residential floor area.