How much long does it typically take for a new construction's RE tax abatement to kick in?

I don't know what's typical, but mine kicked in within 2-3 months after closing. The TCO for my building was issued in late December, but I wasn't able to close until late February.

semerun, thank you. Probably it didnt happen in your case - but do you know how the tax deduction is handled in case of RE taxes that are expected to be abated. Do people not deduct those RE taxes that they paid in full until the tax abatement becuase its expected that the city then refunds the money back to them?

I wonder if the tax abatement can be cancelled because of the budget problems in the state.

julia - that thought did cross my mind. I would be terrified if that happens. the property will suddenly become unaffordable for me and many others in that case. but havent they stopped the tax abatement as of july 31?

My mortgage company was handling my real estate tax payment in escrow. The city never collected the full amount from my bank, only the abated amount- and in this case, the bank refunded to me the difference between what they were holding in escrow and what was needed.

I don't know how it works if the city had collected the unabated amount initially.

I guess in theory the tax abatement can be cancelled (although I am not certain), but I am sure that would be easier said than done in most cases- since many of the properties receiving the abatement were in areas that truly needed stimulus to encourage development. Some of the buildings that were able to game the system and receive a 421-a abatement in areas that didn't really need it received shorter abatements anyway (i.e. a Trump building that receives a 7 year abatement vs a 25 year abatement in a condo in East Harlem).

Curious about your closing delays - TCO was issued in late Dec and you couldn't close until late Feb - was that an issue with the sponsor, bank, other?

The first closings in my building started occuring about a month after the TCO was issued- I don't know the reason for that delay. I wasn't able to close until 5 weeks later because of a variety of reasons. First my bank (Citi) didn't want to close until a comparable apartment closed (there was little in the way of comps in the neighborhood) and there was only 1 other apartment similiar in the building- that delay was about 2 weeks. Then the bank's attorney and the sponsors attorney were fighting as to the location of the closing. I didn't care where it took place, my attorney didn't care, and the sponsor didn't care- but the bank attorney was in White Plains, and the Sponser's Attorney was in Queens- neither wanted to travel...in the end the Bank's attorney caved- this was an additional 3 weeks holdup.

I was renting in a month to month situation in Westchester, was working in Westchester at the time, and my firm was willing to transfer me to the Manhattan office once I moved to the city- so I wasn't pushing too hard. The Sponsor was pretty laid back about it as well.

Mine took about two months to kick in. In the meantime, I had to pay the unabated price. I could have requested a refund but instead I'll just run a credit for 5 years :).

when do tax increases start? we are in a 10 year tax abatement building. i know that increases are two begin after the first 2 years. is it 2 years after the first closing, my closing, or last closing?