Converting 4-3 Family, 2-3 Family
Any insight into the considering converting a 4 family to a 3 family (4 floors)–is that allowed, do taxes change, is it costly? For converting a double duplex to a 3-family in a four story home–is that more costly than turning a 4 into a 3, again, will taxes differ from a typical 3-family, and…
Any insight into the considering converting a 4 family to a 3 family (4 floors)–is that allowed, do taxes change, is it costly? For converting a double duplex to a 3-family in a four story home–is that more costly than turning a 4 into a 3, again, will taxes differ from a typical 3-family, and is it mega costly?
As a practical matter,with a C of O change the city does not reassess to current market rate for taxes until you get over 3 family. It’s a huge increase. Technically they can do it but they have a policy not to.
Also, obviously anything in tax class 1 (1, 2 or 3 family) is taxed at the same rate.
Careful. While both 3 and 4 families are multiple dwellings, 4 families and up are in an entirely different tax class (tax class 2). 3 families are tax class 1.
NYC Glossary of Property Assessment Terms
Tax Class: Four groupings (Classes 1, 2, 3, and 4), to which every property in the City is assigned, based on the use and size of the property.
Class 1: Includes most residential property of up to three units (family homes and small stores or offices with one or two apartments attached), vacant land zoned for residential use in boroughs other than Manhattan, and most condominiums that are not more than three stories.
Class 2: Includes all other property that is primarily residential, such as cooperatives and condominiums.
Class 3: Includes property with equipment owned by a gas, telephone or electric company.
Class 4: Includes all commercial and industrial property, such as office, factory buildings and vacant land other than in Tax Class 1.
Well, if you’re considering going to a 2, then I’d say go for that. If you change the c of o to a two you could avoid sprinklers and save a huge bundle that way.
Both a 4 and 3-family building are considered multi-family buildings. A 2-family building is not a multi-family building. Taxes are generally lower for a 2-family. A Certificate of Occupancy must be changed to reflect the intended occupancy. Otherwise, by definition, an occupancy is illegal if it doesn’t conform with a C of O except in certain situations (generally when one family occupies more than one unit). Regarding costs, one would have to see what work is required.
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Converting up is always harder that converting down. That said, I would never, ever bother with going from a 4 to a 3… You’re in for a potential world of trouble for little reward. The DoB is a nightmare these days. Ditto Pete. Let sleeping dogs lie.
But taking a 2 to a 3 is a must if that’s how you’re going to be living.
changing a CofO is going to be nuisance and can trigger reassessment to full value and raise taxes.
Using a 2 family as 3 would not be smart and could get into trouble. Can not add extra unit. But using a 4 family as 3 is very common. You’ll see plenty of houses for sale that are done this way. But don’t change the CofO.
Construction wise 4 to a 3 would be easier and less expensive. Less fire proofing issues to deal with. Remove a kitchen at the least.