Hi everyone, I recently purchased a condo in Park Slope that has a 15 year tax abatement. The developer built 3 identical buildings (4 floor and 6 units) next to eachother and mine was the last to be completed. I just found out through conversations with neighbors that the other three buildings have a 25 year abatement, while mine has only 15. I am wondering how 4 identical buildings with the same... [more]
Hi everyone,
I recently purchased a condo in Park Slope that has a 15 year tax abatement. The developer built 3 identical buildings (4 floor and 6 units) next to eachother and mine was the last to be completed. I just found out through conversations with neighbors that the other three buildings have a 25 year abatement, while mine has only 15.
I am wondering how 4 identical buildings with the same developer could have ended up with on ehaving 10 years less on the abatement. Did the attorney filing it screw up? What are the factors considered by the granting authority which determine the length? Any opinion as to what the reason might be? Is there any action I can take to get ours adjusted?
On a side note, my brief research into the 421a abatements seemed to indicate that there is a limit on how much you can rent the abated units for. Someone in my building is renting a studio for 2200 and I am wondering if it is legit.
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Response by NWT
almost 14 years ago
Posts: 6643
Member since: Sep 2008
There were lots of 421a changes in 2007, and most likely more since then. Sounds as if it was just a question of timing.
Re: rentals, there's 421a and then 421a Affordable Housing Program. The latter has rent limits, which don't apply to an individual owner renting out a condo.
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Response by Mikev
almost 14 years ago
Posts: 431
Member since: Jun 2010
There are many factors and depending on when each property was purchased it could have had an effect on the abatement period. Without knowing all of that there is no way to know why it is 15 vs 25. I find it highly unlikely given that you first need to get approval to even qualify that they screwed up the filing. This is a long process to get things done starting with preliminary approval that you qualify followed by a whole filing that is done at the end.
With regard to renting I am not sure I understand your question as you said these are condos that were sold. If this was a rental building that had a 421a abatement then yes the rents would be stabalized, however they are stabalized at market rent at the time and then subject to the increase set by the Board each year. So if they had a FMV on day one of $2200 per month then that would be the beginning rent.
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Response by yikes
almost 14 years ago
Posts: 1016
Member since: Mar 2012
ouch--it would have eben nice if your lawyer picked this up---or if, god forbid, your broker told you of this---that 10 year differential is worth serious dough
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Response by truthskr10
almost 14 years ago
Posts: 4088
Member since: Jul 2009
>ouch--it would have eben nice if your lawyer picked this up---or if, god forbid, your broker told you of this---that 10 year differential is worth serious dough
Why, I don't read it this way.
More a case of "I bought a bag of peanuts this afternoon and was happy with my 12oz bag until I found out the people who bought peanuts this morning got the "16oz now 33% bigger bags."
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Response by Mikev
almost 14 years ago
Posts: 431
Member since: Jun 2010
This was the last building it was not as if he chose building 3 and paid what it cost in building 1 and 2, although if that is the case he overpaid. This is simply a question as to why 15 vs 25 and no one is able to specifically answer without knowing all the facts.
There were lots of 421a changes in 2007, and most likely more since then. Sounds as if it was just a question of timing.
Re: rentals, there's 421a and then 421a Affordable Housing Program. The latter has rent limits, which don't apply to an individual owner renting out a condo.
There are many factors and depending on when each property was purchased it could have had an effect on the abatement period. Without knowing all of that there is no way to know why it is 15 vs 25. I find it highly unlikely given that you first need to get approval to even qualify that they screwed up the filing. This is a long process to get things done starting with preliminary approval that you qualify followed by a whole filing that is done at the end.
With regard to renting I am not sure I understand your question as you said these are condos that were sold. If this was a rental building that had a 421a abatement then yes the rents would be stabalized, however they are stabalized at market rent at the time and then subject to the increase set by the Board each year. So if they had a FMV on day one of $2200 per month then that would be the beginning rent.
ouch--it would have eben nice if your lawyer picked this up---or if, god forbid, your broker told you of this---that 10 year differential is worth serious dough
>ouch--it would have eben nice if your lawyer picked this up---or if, god forbid, your broker told you of this---that 10 year differential is worth serious dough
Why, I don't read it this way.
More a case of "I bought a bag of peanuts this afternoon and was happy with my 12oz bag until I found out the people who bought peanuts this morning got the "16oz now 33% bigger bags."
This was the last building it was not as if he chose building 3 and paid what it cost in building 1 and 2, although if that is the case he overpaid. This is simply a question as to why 15 vs 25 and no one is able to specifically answer without knowing all the facts.