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September 12, 2007
Worried About Tax Abatement
Hi Everyone,
I am buying a condo in a newly gut reno brownstone and the offering plan includes a letter from the developers attorney indicating eligibility for a 421-a tax abatement.
Is there anyway I can guarantee this abatement will actually be effective, or can I check if the abatement was applied for and or approved somehow?
I have read some horror stories about abatements never coming through...
Thanks!
Comments
From someone who has dealth with this issue and stupidly tried to solve the problem for myself, I would suggest you hire a lawyer who is familiar with these tax issues to search for the needed information for you. It will save you money in the long run.
Posted by: bheightsejp at September 13, 2007 10:11 AM
Sounds like you have been through some tough stuff bheights - I think your advice is pretty good, any recommendations or names you have dealt with?
Thanks!
Posted by: guest at September 13, 2007 1:59 PM
is this place in South Slope?
Posted by: guest at September 13, 2007 3:28 PM
yes it is...How did you know?
Posted by: guest at September 13, 2007 5:07 PM
Wana guarantee? read the condo offfering plan every night and make sure the sponsor does exactly whats in the plan. Thats how you guarantee benefits.
Posted by: guest at September 13, 2007 8:21 PM
Thanks - i will sleep with it under my pillow every night!
Posted by: guest at September 13, 2007 9:01 PM
421 A is for new construction. If this is a rehab as stated, the building gets benefits under J-51. Buyer beware! Make sure the building has no DOB or HPD violations. These have to be cleared before a Certificate of Reasonable Cost is generated.
Posted by: guest at September 14, 2007 12:50 AM
I am pending a J-51 in South Slope that I am worried - luckily there is only 1 minor violation that should be easily cleared even before the get the CO. What is the Certificate of Reasonable Cost becase this reovation was well into the millions as it is a gut renovated brownstone (it was featured in Brownstoner months ago)
Posted by: guest at September 14, 2007 9:47 AM
South Slope? Is the building that you are referring to a gut renovation, red brick and have wrap around terraces that are glass?
Posted by: guest at September 14, 2007 10:24 AM
No thats not it, but I know the one you are talking about...
I think its like 15th or 16th street right?
I did look at that a long time ago, but they were asking way too much and I was having trouble justifying when we went to the open house consisting of a construction zone shell and artists renditions...
Posted by: guest at September 14, 2007 11:10 AM
Thats the one its actually comming together quite nicely!!! good luck on your abatement
Posted by: guest at September 14, 2007 11:12 AM
This follows my post of this eary a.m. A "Certificate of Reasonable Cost" is issued by HPD for J-51 benefits when all paperwork is 100%, including signoffs, dismissal of every single violation and certification of money spent. You don't get 100 cents for every dollar spent, rather values are allowed for different types of work. For example HPD might allow $160 for every new window installed even if you spent $500 per window. All of the values allowed for the project are added up and the result is the CRC (Certificate of Reasonable Cost.) Your real estate taxes will be partially exempted and abated based on different formulas which are described in a PDF document HPD has posted on its web site. Good luck and hope the developer's J-51 expediter knows how to process this benefit to the maximum allowed. I've done them myself and it's a long tedious process.
Marion
Posted by: guest at September 14, 2007 2:10 PM
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