Using 3unit townhouse using as 2
I am considering purchasing a legal 3-unit townhouse (there are 3 meters for each floor). My husband & I are planning on removing the kitchen on the 3rd floor unit and use the upper 2 units for ourselves and eventually rent the bottom unit. Do I need to change the C of O or can…
I am considering purchasing a legal 3-unit townhouse (there are 3 meters for each floor). My husband & I are planning on removing the kitchen on the 3rd floor unit and use the upper 2 units for ourselves and eventually rent the bottom unit.
Do I need to change the C of O or can I still keep it as 3unit even if I take out one of the kitchen?
Any advice is helpful,
Thanks,
The real problem is for refinance/resale/etc, in which case you must must must have a c of o that reflects the actual state of the house. So probably no rush but you should do it eventually!
I have a 3 family. I am not complaining because I have a good situation, but I can also tell you that refinancing is easier to do on a 2 family and you will get better rates, because it’s less of an “investment” property. Also, if you sell the house the banks might require the buyer to put a greater percentage down, which will make it more difficult to sell. Just some other things to keep in mind…
since I work alot in the DoB there is no reason for you not to change the CO. Since you are already hiring an architect to convert the 2 units into 1 he should just change the CO in the process. Your taxes will be less as a to unit building and you will not run the risk of getting fines from the DoB.
There is no guarantee that changing your CO from 3 to 2-family would decrease your tax rate, and a good possibility that a change of CO in tandem with renovations will increase it. DOB inspections, fines, etc., are definitely on the rise. There’s plenty of information online if you search. Consult a knowledgeable professional before making your decision. You can find some info re: tax classes, assessments, reductions, etc., here:
http://www.nyc.gov/html/dof/html/property/property_rates_taxrates.shtml
http://www.nyc.gov/html/dof/html/property/property_val_appeals.shtml
http://www.nyc.gov/html/dof/html/property/property_tax_reduc_individual.shtml
Talk to your attorney first, you’ll be using one for closing so let them work for their money. I have a nasty feeling that the city has decided to use the DOB as a revenue source, they seem to be handing out fines to the building sites in my neighborhood left right and center.
problem with changing cOfo is like getting new tax rate as full value. Not changing cofo tax increases are limited by law.
That is why taxes are all over the place in NYC.
On this forum a couple of weeks ago someone opined that the tax basis isn’t different for 3 & under. I still query that, though, since I have a C of O for a 2 & my taxes are higher than a friend’s who has a larger house, larger lot but C of O for one.
Not 100% sure about this, but I believe that 3-family v. 2-family has code and tax consequences… 2 is more favorable as I recall when we went from 4-family to 2-family in a townhouse.
oh- turn off gas service for floor losing the kitchen.
And talk to licensed electrician about running all the electricity thru 1 meter instead of 2….otherwise gonna pay for 2 services.