5 Family C of O
We are in contract on a lovely brownstone in Bed Stuy that is currently listed as a 5 family–making it a commercial property. i have read a number of other posts on this topic but many discuss the perils of filing and shining the spotlight on your tax status may actually increase taxes (YIKES). Is…
We are in contract on a lovely brownstone in Bed Stuy that is currently listed as a 5 family–making it a commercial property. i have read a number of other posts on this topic but many discuss the perils of filing and shining the spotlight on your tax status may actually increase taxes (YIKES). Is this true? IS there any benefit in downgrading it to a 4 or 3 family? And how does one go about doing that? Anyone have any experiences to share about length of time and money involved it this adventure with the NYC department of Buildings? All help and input is very much appreciated.
Thanks so much for responding—it is so wonderful that this resourceful and supportive community exists.
Although the property does not have a store, I am told that it is a commercial apartment building because its more than a 4 family. My lawyer and mortgage broker tell me it has tremdous impact on my mortgage (getting one may be difficult since there is no recent rent roll and we plan on occupying 2 floors), closing costs and taxes.
Maurice, I may follow your advice and try to get the current owners to file an alt1. do you have any idea hoe long it takes to get one of those through?
first off, if its a 5 family (no commercial stores, etc.)its still a residential building
if you downgrade it to a 3 or 4 family i dont know if that will increase or decrease taxes
any building thats 3 fam or over has to be registered with hpd as a multiple dwelling every year
if you want a new c of o they should file an alt1
if you dont care about getting a c of o they can file an alt 2, non d14 to do the combination and renovation of aparments
the cost is going to depend on the amount of proposed work
filing fees are 1.03% of the construction cost
You need to get an architect
if the building is landmarked your going to have to get plans approved by lpc as well as dob
from filing to approval for an alt 2 is usually 2-4 weeks
from filing to approval for an alt 1 is usually 4-6 weeks
I can assist you with this process as I am a building consultant
Maurice
718-844-1054
MVJ@tmo.blackberry.net
Tissonybuilding Consultants
First, are you able to get a residential
mtge on the property without changing the C of O?
If you are, then I would not bother changing it
and go the “stealth” route of filing ALT-2s
to combine apartments.