Convert 2- to 1-Family
I am hoping to close on a house in Brooklyn whose current C of O is 2-family. The building is actually a single house with 2 floors, and I am considering changing the C of O to 1-family (interest rates are higher for multi-family units). I understand that there is quite a bit involved and…
I am hoping to close on a house in Brooklyn whose current C of O is 2-family. The building is actually a single house with 2 floors, and I am considering changing the C of O to 1-family (interest rates are higher for multi-family units).
I understand that there is quite a bit involved and a few players; I’d like at this point to understand what the ballpark cost is including city and professional fees to determine if it’s worthwhile.
Thanks,
Kevin
ps. It was first appraised as a two family and then as one family, the second appraisal coming back 25K higher. Two family is not always more valuable than one I am told by the good people at JPMorgan Chase.
Is there actually a C of O (have you seen it), or does the DOB just list the usage as a two family? The home I purchased (built in 1880) is listed with DOB as two family, taxed as a two, but there is no C of O. It was a problem when I was purchasing because there was only one electric meter. Two gas meters, two kitchens. No plans on file. DOB denied letter of no contest for two family. Finally sold as a one family. Now one kitchen. Still no C of O. City engineer says it is what the intended use is, if there is no C of O. Cost for change, zero dollars beyond my reno costs.
Jock, this is precisely why the whole system sucks and is hated by everyone except the architects who profit from its complexity.
In my case, I could have put up the wall. The GC had already charged me to put up the wall. It was on the plans. The engineer who signed off tho was smart enuf, and decent enuf, to see the big picture and realize that why should I have to put up the wall only to take it down again? In his case, he’s off the hook, cuz he can say the wall was there when he signed off. I would back him up cuz it’s the right thing to do. All a DOB final inspection would of accomplished on a self-certify like mine is to actually make me put up a wall. Then I take it down after the inspection. That’s ‘green’, right?
Like you say at 6:37, why should the DOB care when you’re going down from 2fam to 1fam?
But no, they have to break balls and insist on a c of o change at a huge amount of money and time. So, people game the system because the rules are all fucked up. And the guvment will never be able to outwit the homeowner because that’s the nature of the guvment.
It’s totally ridiculous to force a homeowner to jump thru hoops to downsize the number of people living in a home. The other way around, absolutely.
Now, why don’t you answer the OP’s question? Since you’re an expert and an AIA architect. How much does it cost to do this ridiculousness? I’ve said 35k and 6 months. Do you agree? Or not?
Apartments are not required to change the c of o. There is a TPPN issued on that. I would think that as long as it is laid out as a two family DOB would not care if it is used by one family. The problem is when you combine it all into one unit. If you want to do that, then change the c of o. If you need to talk further, give me a call.
Jock deBoer, AIA
718-354-7926
Can one of the architects please clarify: Is it illegal to live in a house zoned as a “2-family” as a 1-family? Does a 2-family absolutely need 2 kitchens and a separation of apartments if one family is living in the entire space? I was always under the impression that as long as the c of o was higher than how it was being used, it wasn’t a problem, but it was a problem if the reverse was true. In other words, one family can legally live in a 2 family c of o, but 2 families can’t live in a 1 family c of o.
In large co-op buildings, 2 apartments are often combined into one larger one. Do those buildings constantly change their c of o each time an apartment is combined? Are the rules different for larger buildings?
Denton,
That engineer was nuts. That is good for a nice fine and most likely a sanction or two. DOB is now requiring mandatory final inspections on professional certified projects so people will not be getting away with those things anymore.
Jock deBoer, AIA
No a change in C of O doesn’t necessarily trigger a new assessment for tax purposes.In any case state law prohibits assessment increases of more than 6% per year or 20% over five years for 1-3 family houses.
IN NYC they show the tax assessment value and full value and keep trying to move them closer within your class. Most 1-3’s aren’t anywhere near their actual value. You can see your assessment and your neighbors at the http://www.nyc.gov in finance somewhere.
Leave the CofO alone. You can live in all the parts and do what you want as is required by law generally 2 families are more valuable than a one and when you went to sell you will be glad you didn’t change it.
I think if you change CofO you could also be taxed (annual real estate ) with a new and full assessment…whereas now you probably have pretty low assessment compared to market value.
Not a good idea to change.
I face the same situation. I was told by my expediter it would be 35k and six months. That of course factored into account I was already doing a gut rehab, so I think the cost was 20-25k over and above keeping it as a two fam.
To avoid the addl cost and especially time, we elected to keep it as a 2fam and live in it as a 1fam. Yes, that too involves certain compromises, but otoh Adam and the others are right; much better to keep the flexibility of living in a 2fam as a family, than changing c of o.
On the plans, you will need to have a separation btw the first and second floors, and you will need to show a kitchen on the second floor, and you will need to have plumbing for it.
My home office from which I write this has all the plumbing to be converted back to a kitchen if I choose to rent out the second floor, or if a future owner decides to use as a 2fam.
The PE who signed off my job was cool with me not building the wall to separate floors even tho it was on the plans once he knew what we were doing. Cuz he knew we’d just take it down anyway.
The plumbing and a half assed kitchen needs to be there as the DOB will do at least two inspections on it. When they are done, you throw out the old kitchen junk, cap the pipes, and there you are.