Flippers Rejoice

More tax cut! Exactly what NY needs to fill its budget gap.
$5 subway ride anyone?

How is this a tax cut?

thx for the link pulaski.

The proposed regulation would have prohibited Fannie Mae, Freddie Mac and Federal Home Loan banks from purchasing loans in buildings where there is a Flip Tax....so, what is the big deal? How much of an impact would this have had?

99% of all loan originations go to frannie. No frannie, units with flip tax = all cash or 10% mortgages. Do the math.

"99% of all loan originations go to frannie. No frannie, units with flip tax = all cash or 10% mortgages. Do the math"

Exactly, In addition, any buildings that would have been relying on flip tax revenue and eliminated for the new rule would have had to go somewhere else for that revenue, higher maintenance charges or special assessments.
This undoubtedly would have brought the NYC real estate market even lower.

The exclusion just leaves NYC status quo.

For those who don't know the history of this, the regulation was inspired by creative developers, mostly of SFRs in tract housing on the mainland. Times were so bubblicious for new construction housing that said developers invented covenants, sticking with the property for 100 years, that created a flip tax upon every subsequent resale for the exclusive benefit of the original developer ... not even to benefit the HOA. At least I'm pretty sure my post-ellipsis phrase is correct. In any event, that practice was deemed not nice and not smart, and it was not intended to muck up flip taxes as we know them in Manhattan.