Buildings with flip tax exempt from proposed FHFA ruling that would have restricted financing Sigh of relief for NYC’s residential real estate industry REBNY members warned legislators of proposed ruling’s crippling impact Yesterday, the Federal Housing Agency published a proposed rule that would limit Fannie Mae, Freddie Mac, and The Federal Home Loan Banks from dealing in mortgages on properties encumbered by certain types of private transfer fee covenants and in certain related securities. Addressing the concerns raised by REBNY, the proposed rule now excludes private transfer fees paid to homeowner associations, condominiums, certain tax-exempt organizations that use … (1 comments)
flip tax: Manhattan Real Estate Q&A: What is a Restrictive Covenant?
- 01/08/11 12:14 PM
Q: What is a Restrictive Covenant? A: Manhattan housing is primarily made up of coop and condominiums. Both coops and condos in Manhattan have restrictive covenants. The legal definition for a restrictive covenant: "A provision in a deed limiting the use of the property and prohibiting certain uses". Most all condominiums in Manhattan have the restrictive covenant: First Right of Refusal. Most coops in Manhattan have the restrictive covenant: Right to Refuse. Many people confuse the two different covenants. First right of refusal means the condominium has the first right of refusal on an offer but they would have to buy the condominium … (6 comments)
flip tax: Real Estate and Politics is LOCAL: In New York It's Called A "Flip Tax"
- 10/27/10 04:18 AM
Update: 2/2011 REBNY (Real Estate Board of New York) saves Flip Tax The Federal Housing Finance Agency (FHFA) is proposing a guidance (rule) that would restrict Fannie Mae, Freddie Mac, and the Federal Home Loan Banks from investing in mortgages in buildings with a Flip Tax (private transfer fee covenant). WASHINGTON, DC–(Marketwire – October 15, 2010) – The National Association of Realtors® strongly supports the proposed guidance from the Federal Housing Finance Agency to prevent government-sponsored enterprises Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks from investing in mortgages encumbered by private transfer fee covenants. In a letter … (23 comments)
flip tax: The "Flip Tax" Creative Financing or a Coop Cop Out ?
- 08/27/06 12:42 PM
The flip tax is a transfer fee that many new york coops and condos impose on shareholders and owners. In the early 80's when many rental buildings converted, huge profits were being made by former renters who bought their units at inside prices and then resold them. Called "flipping" The boards decided to impose the transfer fee and call it a flip tax on sellers to disuade flipping. Due to high oil costs, insurance particularly terrorist insurance, neccessary repairs and increases in expenses many buildings need to build their reserve fund and are trying to impose flip taxes. In order for the flip tax to … (29 comments)
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