Tax implication of conversion from 5 family (C0) to Two Family (B1)

1\. Is this a simple process to convert a brownstone from 5 family to Two Family as long as plans are filed? 2\. What are the tax implications? Do you get assessed as the new category without grandfathering of the assessed value? If that is the case, will the taxes go up significantly in Park Slope / Prospect Height area. 3\. Any recommendations for lawyers who are experts in this area? Will appreciate if anyone has any experience or expertise on this. Thanks,.

katanov01

in Conversion 9 years and 4 months ago

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eileengray | 9 years and 4 months ago

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Unfortunately, there is no simple answer. The DOB could say that it is a change of use and requires an Alt 1 and new C of O. If the building was originally a one or two family and there is documentation to that effect, you might be able to restore it to its original use without the Alt 1\. If it’s three or more floors (and not on a wide street), the sprinkler issue may raise its head. This type of situation is frustrating for owners because the DOB has refused to spend the time and money to develop an existing building code that clearly delineates what owners can and cannot do. In the 1950’s and 60’s there were large numbers of row houses that became multiple dwellings with three or more units. Today the trend is in the opposite direction – multiple dwellings becoming one or two family homes. So when will the City wake up to the current climate?

resident2 | 9 years and 4 months ago

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It is much easier to downsize ( 5-2) than the other way around. It is not an Attorney that you need but an Architect and preferably one that is familiar with “old code” so that it will be less destructive to the property to do it under the “new code”. The Real Estate Tax class will be a lower rate, but depending on the $ value put on the permits the “market value” may go up on the assessment. (Market Value in the RE Tax assessors office has no relation real Market Value) But the tax re-assessment will definitely be lower if you can accomplish the downsize under an “old code” alteration.