Sponsor asking for unpaid SCRIE
Here’s an odd situation for you legal thinkers: The sponsor of our coop building is only now asking for past SCRIE payments that one of their tenants applied for. The payments in question go back as far as 2004. Since 2005, when I became a board member, this has NEVER been mentioned by them at…
Here’s an odd situation for you legal thinkers:
The sponsor of our coop building is only now asking for past SCRIE payments that one of their tenants applied for.
The payments in question go back as far as 2004.
Since 2005, when I became a board member, this has NEVER been mentioned by them at ANY board meeting we’ve had. Nor have they taken any initiative to settle this with our managing agent.
Again, only now are do they realize they’re due money, and they want the coop to pay it.
Question: They’re due several thousand dollars. How much, if anything, should the building owe them? Is there a limitation on what you can get back from the board for these tax abatement programs?
nvco
yes, how far back are you obliged to go?
Every corporation needs to keep its records for at least five years, so I would say you would be responsible for those five years. I agree he should have followed-up from his end, but your accountants and auditors should have caught it as well.
Hi Sam,
Absolutely. I complete agree.
My point, and question, is, the owner has not done any due diligence on following up on PAST years’ payments.
For 2008, we fully intend on forwarding the payments to them.
But what about 2004, 05, 06, 07. I mean, you can’t not follow up on your book-keeping, then 5 years later say, “Hey I want my money from 2004!”
See what I’m saying?
The city issues real estate tax credits for eligible rent regulated apartments to the corporation. The corporation then needs to refund that money to the owners of the units in question. If your building keeps orderly records, you will find the city’s SCRIE documents that are sent out every year. These documents name each tenant and the amount of the tax credit they received. These documents usually go out in January. That money is not for the corporation to keep. It is a supplement to the (usually already ridiculously low rent) poor seniors pay to the owners of the units, usually the sponsor.
I used to be the treasurer for my coop and I remember having to deal with SCRIE and STAR and all of that.
It sounds like the sponsor should have given you the heads up earlier but I’m not sure that it matters at this point. You’ll probably have to pay some of it back if the tenant qualified.
Check out this link. It might be helpful
http://www.nyc.gov/html/dfta/html/scrie/scrie.shtml
Good luck