Buy a co-op at a discount: All about HDFCs and how to snag one

WHAT IS AN HDFC CO-OP? There are plenty of Housing Development Fund Corporation (hence the shorthand, HDFCs) buildings across the city—including rentals—but co-ops are usually what garner interest. The original, best-known types were created several decades ago when the city allowed tenants in buildings with derelict landlords to form co-operatives, take over their buildings, and buy their apartments for $250 apiece, as the New York Times reported last summer (yes, that’s the correct number of zeroes.)

Source: Buy a co-op at a discount: All about HDFCs and how to snag one

TRANSFER TAX CONVEYANCES PURSUANT TO DIVORCE DECREE OR SEPARATION

Conveyances for no consideration made between spouses are a common occurrence. Such conveyances may be made for a host of purposes, such as the making of a gift, estate planning, and loan eligibility.

In all of these instances, no money is being exchanged. The transfer is without consideration and is not in connection with a sale. As a consequence, gift transfers or transfers made without consideration are not subject to transfer tax. Both the NYS real estate transfer tax return (TP-584) and the NYC RPT real property tax return (NYC-RPT) list no consideration transfers among the types of conveyances that are exempt from transfer tax.

But what of conveyances made pursuant to divorce decree or separation agreement? In such instances, no money is being exchanged. Is the transfer without consideration and not in connection with a sale?

At first glance, one might assume that because no money is actually being paid, the conveyance is without consideration and not in connection with a sale. Schedule I of the NYC-RPT addresses this issue. It asks for four pieces of information: the fair market value, the existence of any unpaid mortgages, the percentage of ownership interest being transferred to the other spouse, and any alternate value assigned to the transferred interest that is recited in the settlement agreement, separation agreement or divorce decree. The basis for taxation is found in Section 23-03(d)(3) of Title 19 of the Rules of the City of New York (“RCNY”). This section states that “a conveyance of realty from one spouse to the other pursuant to the terms of a separation agreement” is subject to tax.

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Co-op Vs Condo | Co-op Apartments NYC

In 1882, the developers of the Rembrandt declared they were seeking “people of means and good social standing,” as owners. The building, at 152 West 57th Street, was New York City’s first co-op, a form of vertical living that quickly became ubiquitous in the city and still makes up a good chunk of its housing stock. But the age of the co-op is well and truly over: Since 2000, developers have moved to create a mere 75 new co-op projects, and no more than seven total in any given year, according to a new analysis by The Real Deal.

Read the entire article here: Co-op Vs Condo | Co-op Apartments NYC

How to Get a Mortgage on a Co-op or Condo in New York – WSJ

In New York City, key decisions often come in pairs: Yankees or Mets? LaGuardia or JFK? MoMA or the Met? In real estate, it comes down to this: condo or co-op?

Cooperative buildings, better known as co-ops, are abundant in New York’s five boroughs but are far less common in other cities. In a co-op building, buyers purchase a share of the entire property and co-own it with fellow residents. With a condo, the buyer purchases the real property.

Read more: How to Get a Mortgage on a Co-op or Condo in New York – WSJ

NYC Building Demolition | Historic Preservation NYC

New York City is constantly being rebuilt.

In the 19th and 20th centuries, dozens of beautiful old buildings were demolished to make way for new development. It wasn’t until 1966, with the passage of the National Historic Preservation Act, that historic buildings could be protected by federal law.

Click through to see some of these vanished buildings, which include iconic hotels, businesses, and private homes.

via NYC Building Demolition | Historic Preservation NYC.

NYC – Dealing with Delays in Housing Court

Dealing with Delays in Housing Court

April 3, 2014 by Todd Nahins

If you are a landlord in New York City and have been to Housing Court recently, you know the process of obtaining your overdue rent or trying a case has become exceedingly difficult.

In the 1980s, a Civil Court judge was designated for the Calendar Assignment Part on a weekly basis. The Part originally known as Part 49, and later Part 18, would hear all motions, then send cases to different parts of the Housing Court for trial. Cases were not adjourned more than 10 days unless both sides consented. Compared to the current process, when there may actually be fewer calendared cases, those were the days.

read rest of article here:  Dealing with Delays in Housing Court.

NYC – Deciding Whether to Amend Old Registrations

Deciding Whether to Amend Old Registrations

May 29, 2014 by Dov Treiman

The recent amendments to the Rent Stabilization Code (RSC) have complicated an owner’s decision whether to amend old rent registrations. Here are a few new factors owners now have to consider:

read rest of article here:  Deciding Whether to Amend Old Registrations.

NYC – High Rent Vacancy: Not Actually Automatic Deregulation

High Rent Vacancy: Not Actually Automatic Deregulation

July 18, 2014 by Adam Leitman Bailey

Throughout the residential housing industry, there is dangerous ignorance of the amendments promulgated this year, amending the Rent Stabilization Code. All owners should be reading as much as possible about these amendments. Business is simply not the same as it was.

One of the massive changes is in the notice that an owner must give to a new tenant immediately after deregulating the premises for rent that has gone above the $2,500 threshold. Prior to 2014, it was enough for the landlord to furnish the new tenant with a copy of the annual rent registration immediately following the deregulation. Under the old rules, the owner delivered it to the new tenant the later of 30 days after the registration or 30 days after signing a lease with the new tenant. That requirement is preserved.

However, the new regulation adds an additional requirement. Now, in addition to sending that copy of the registration notice, the landlord must also send a new notice promulgated by the DHCR as part of the new regulations. The DHCR has published this form at http://www.nyshcr.org/Rent/RentCodeAmendments/HRVD-N-SJ.pdf. The owner must provide the form to the tenant within the earlier of 30 days after the commencement of the tenancy or 30 days after signing the lease. Prudent landlords have been giving these forms to tenants right at the lease signing. If the owner acted wisely, the owner was already preparing the form while the apartment was still vacant.

read rest of article at: High Rent Vacancy: Not Actually Automatic Deregulation.

NYC – Crack Down on Chronic Litigants

Crack Down on Chronic Litigants

April 29, 2014 by William J. Neville Esq.

Many tenants treat their landlords as banks where they can get interest-free loans. These are the tenants who chronically refuse to pay rent when due. They take advantage of the delays in the legal system to hold off paying the rent for as long as possible. Trying to get these tenants to pay rent on time costs owners time and aggravation.

Sometimes, these tenants are too smart for their own good. My office has had success pursuing “chronic litigant holdovers.” Courts are more likely to evict these tenants and award legal fees. This is especially true where the owner enters into a probationary stipulation where the tenant promises to pay rent on time. The probationary stipulation is an efficient and cost-effective way (compared to trial) to obtain a judgment of possession and warrant of eviction if the tenant doesn’t pay rent when due. The chronic litigant holdover is a potent weapon for owners to use against tenants who take advantage of owners and the court system.

read rest of article at:  Crack Down on Chronic Litigants.

NYC – Amended Rules on Deemed Leases and Preferential Rents

Amended Rules on Deemed Leases and Preferential Rents

February 21, 2014 by Dov Treiman

On Jan. 8, 2014, the DHCR issued the first amendments to the Rent Stabilization Code in some 14 years. While the new amendments—27 in all—do have the virtue of making the applicable law easier to find, gathering it all into one place, for the most part, these amendments will simply increase the cost of doing business, without necessarily providing the tenants a corresponding benefit. In some instances, the amendments are commonplace and sensible. But in others, there is a certain air of seeking to punish landlords for simply being landlords. Here’s a look at two of those amendments.

read rest of article at:  Amended Rules on Deemed Leases and Preferential Rents.