From the New York Times: Lead Paint and Illegal Sublets
In the attached article, the New York Times answers common questions that prospective purchasers may have. The first part discusses lead paint, which is a common feature of many older apartments. Though there are associated hazards, especially in houses with small children, there also ways that those risks can be easily recognized and mitigated.
In the second part, the article discusses the laws and ethics of renting out apartments short-term through sharing services such as AirBnB, which in some cases can be illegal. Prospective users of these services should always be aware of local laws concerning apartment use, as well as their building’s policy on temporary sublets, before hosting.
Details such as these can sometimes appear daunting to prospective purchasers, but remember that your real estate team is here to help–keeping actively involved during the due diligence stage of any purchase is the first step to staying educated about the rules and risks of purchasing a particular condo or coop.
Jack Harari Certified to Teach Continuing Education Courses
Congratulations to firm Partner Jack Harari, who recently achieved his certification to teach continuing education courses from Governor Cuomo’s Bureau of Educational Standards. In the future, he will be teaching seminars to Real Estate brokers on a variety of topics relevant to the profession. If you are a broker and have ideas for topics to be covered, please let Jack know and we will try to work it into one of our future presentations.
From the New York Times: Coop Q & A
The huge presence of cooperative apartments in New York City is one of the many things that makes the local Real Estate market truly unique. However, the complex nature of coop ownership can sometimes be daunting to would-be purchasers–or even present owners. Since each coop is in essence its own independent corporation, individual buildings can distribute communal responsibilities quite differently.
This article, from the New York Times, explores the relationship between a coop board and the rest of its residents. First, how much control do residents who are not on their coop board have over renovations and other potentially costly decisions? And secondly, how can a coop determine who serves on the board and who does not–especially if no one wants to?
It is always important for a prospective purchaser to have a good sense of the workings of the building into which they hope to purchase, so don’t be afraid to ask questions and discuss any due diligence with your Real Estate Broker and Attorney.
New Change to NY Mortgage Tax Law Takes Effect
On October 1st, a change in New York Mortgage Tax law went into effect. Mortgages guaranteed by or participated in by an IDA, or Industrial Development Agency, are no longer exempt from all mortgage taxes, but will now have to pay New York’s special additional mortgage tax.
The special additional mortgage tax applies to New York City, as well as all other counties in New York which make up metropolitan commuter transportation districts. Outside of these counties, however, the tax is not applicable. Depending on the Transportation district, the tax consists of .25-.3 percent of the mortgage amount. You can find the information promulgated by the NYS Department of Taxation and Finance here.
Dinner on Us!
Weidenbaum & Harari told all our employees to pick some special people in their lives to go out for dinner…on us! The only catch? We wanted proof of the fun people were having in the form of a photo (the sillier the better). So we armed everyone with our firm logo and sent them out for the challenge. We recently wrapped up our 2016 staff photo contest, and the results are finally in. How did it turn out? We’ll let you see for yourself:
While we were impressed with all the entries, we would like to especially congratulate the Grand Prize winner of the 2016 Dinner On Us contest: Quinn Ramsay! We know Quinn will appreciate the Grand Prize and expect everyone will up their game in 2017!
NYC Real Estate Attorney’s Closing Report: September 2016
Just a few of our recent closings. If you are also looking to buy or sell at these property addresses, you might want to give us a call.
| Property | Value | Transaction |
| 239 Union Avenue, Harrison, NY | $1,400,000 | House Purchase |
| 1265 Decatur Street, BK, NY | $465,000 | Condo Purchase |
| 225 East 36th Street, NY, NY | $465,000 | Coop Sale |
| 201 East 77th Street, NY, NY | $2,936,000 | Coop Purchase |
| 15 Glenn Drive, Woodbury, NY | $770,000 | House Purchase |
| 535 Dean Street, BK, NY | $1,225,000 | Condo Purchase |
| 325 West 45th Street, NY, NY | $345,000 | Coop Purchase |
| 67-121 Clyde Street, QN, NY | $1,190,000 | House Purchase |
| 406 Lorimer Street, BK, NY | $965,000 | Condo Purchase |
| 2 Cornelia Street, NY, NY | $2,225,000 | Condo Purchase |
NYC Real Estate Attorney’s Closing Report: August 2016
Just a few of our recent closings. If you are also looking to buy or sell at these property addresses, you might want to give us a call.
| Property | Value | Transaction |
| 319 East 50th Street, NY, NY | $390,000 | Coop Purchase |
| 270 Riverside Drive, NY, NY | $3,095,000 | Condo Purchase |
| 3965 Route 343, Amenia, NY | $255,000 | House Purchase |
| 165 West 66th Street, NY, NY | $475,000 | Coop Sale |
| 516 East 78th Street, NY, NY | $475,000 | Coop Purchase |
| 39 East 12th Street, NY, NY | $740,000 | Coop Sale |
| 323 West 83rd Street, NY, NY | $1,050,000 | Coop Sale |
| 10-63 Jackson Avenue, LIC, NY | $585,000 | Condo Purchase |
| 250 Mercer Street, NY, NY | $1,300,000 | Coop Purchase |
| 246 West End Avenue, NY, NY | $ 1,850,000 | Coop Sale |
What are HDFC Buildings?
HDFCs (Housing Development Fund Corporations) are essentially income-restricted cooperatives; they limit a potential purchaser’s ability to buy in based on whether their annual salary falls below the calculated income cap. The establishment of HDFCs were geared toward purchasers looking for a residential home to keep for a substantial period of time, with the possibility of passing it on to family members. They compose much of New York City’s affordable housing. HDFCs are further classified by the way in which the low income cap is calculated, either through a regulatory agreement with the city or without one.
If the building does have a regulatory agreement, then the income cap is based on a percentage of the median income within the surrounding neighborhood. If the building does not have a regulatory agreement, then the income cap is generated by a formula based on the building’s maintenance charges and utilities fees. Usually, the standard is to bracket the income at about seven times the annual maintenance charge. Further, the income cap will mimic the economics of the surrounding area and increase when the area becomes more affluent. For instance, as a maintenance charge increases within an HDFC building, the income cap will follow suit and allow for a greater annual salary. While HDFCs require a purchaser to fall within the low income cap, there is no requirement as per the resale price. Thus, a seller has full discretion in determining the market price of the HDFC. Nonetheless, the resale price is often regulated by the high flip tax that HDFC buildings impose (often about 30% of the profit) and the relatively limited supply of potential buyers that fit the income requirements to purchase.
The HDFC market is aimed to benefit purchasers, since a potential purchaser is able to acquire a high-profile residence at a price that is substantially lower than the market rate. The ideal purchaser is someone that has acquired a large trust or inheritance but has a low income. However, a purchaser trying to obtain funding may run into issues as banks tend to look less favorably on HDFC loans. This arises from the fact that HDFCs are seen as riskier investments, and thus have higher rates. Moreover, where a purchaser is unable to obtain bank financing, the HDFC is likely to require an all cash transaction. We would urge any HDFC purchasers to consult with a banker that has a proven track record of closing loans on HDFC projects, as the financing component of the transaction is often the piece of the transaction that has the most associated risk.
For further information on HDFCs please check out the following links:
NYC Real Estate Attorney’s Closing Report: July 2016
Just a few of our recent closings. If you are also looking to buy or sell at these property addresses, you might want to give us a call.
| Property | Value | Transaction |
| 305 West 16th Street, NY, NY | $771,000 | Coop Purchase |
| 22 Avon Road, New Rochelle, NY | $737,000 | House Purchase |
| 139-141 West 126th Street, NY, NY | $1,129,000 | Condo Purchase |
| 47 Dean Street, BK, NY | $1,850,000 | Condo Purchase |
| 25 West 54th Street, NY, NY | $1,425,000 | Coop Purchase |
| 105 Ashland Place, BK, NY | $387,000 | Coop Purchase |
| 201 East 21st Street, NY, NY | $1,100,000 | Coop Purchase |
| 361 Sterling Place, BK, NY | $318,000 | Coop Purchase |
| 47-28 11th Street, LIC, NY | $1,130,000 | Condo Purchase |
| 233 East 69th Street, NY, NY | $1,270,000 | Coop Purchase |
NYC Amnesty Program Now in Effect
From September 12 to December 12th of this year, the City will be taking part in an Amnesty Program meant to reduce or forgive certain fines and penalties from ECB (Environmental Control Board) violations. To be affected by the program, the fines must have gone into judgment before June 12 of this year. For more information, please see this announcement on the City website.