New York's Cooperative and Condominium Community

Habitat Magazine Business of Management 2021

HABITAT

LEGAL/FINANCIAL

HOW LEGAL/FINANCIAL PROBLEMS ARE SOLVED BY NYC CO-OPS AND CONDOS

Co-op & Condo Property Tax Abatement Dies in Albany – Now What?

Tom Soter in Legal/Financial on June 27, 2012

New York State

Tax Abatement Dies in Albany

(Source: Wikipedia)

June 27, 2012

The long version of this sad tale goes back 16 years to when the tax abatement was passed as a “temporary” measure, designed to give some relief to co-op and condo owners, who didn’t get the same tax breaks that others received. “It was meant to be a first step,” explained Mary Ann Rothman, executive director of the Council of New York Cooperatives & Condominiums. Co-op and condo owners “were  recognized to be paying three to five times as much in property taxes as other homeowners in Class 1, which is for one-, two-, and three-family homes.”

The problem is, it turned out to be the only step. Until now. The state law authorizing the amendment had to be renewed by June 21, the last day the legislature was in session. On that date, the city proposed a wide-ranging bill that called for changes not only in the tax abatement but also in the J-51 (tax benefits for renovation) and 421a (residential building incentives) programs, as well. Since state law requires a three-day waiting period before a bill can be considered – and since Governor Andrew Cuomo would not intervene to waive the requirement – the bill was DOA.

According to Eric Weiss, a tax attorney and partner in Tuchman Korngold Weiss Lippman & Gelles, the city seemed surprised by the outcome, having already prepared and mailed out tax abatement forms for fiscal 2013. Can the city continue the tax abatement on its own? “No,” said Weiss, “it has to come from the state.”

While most insiders were shocked by the outcome – although one professional wasn’t too shocked, saying, “That’s Albany” – many predict that after the November elections, a special session will be called to pass some form of an extension. “We have been advised that the legislature is expected to take up these issues during a special session later this year,” Steven Spinola, president of the Real Estate Board of New York, said in a prepared statement. “We expect that after the special session, a co-op/condo abatement, with very few changes for primary residents, will continue and the J-51 program will be extended.”

Ask the Experts

learn more

Learn all the basics of NYC co-op and condo management, with straight talk from heavy hitters in the field of co-op or condo apartments

Professionals in some of the key fields of co-op and condo board governance and building management answer common questions in their areas of expertise

Source Guide

see the guide

Looking for a vendor?